Still steady:

The Star Malaysia - StarBiz - - Front Page - — Bloomberg

A man works on an off­shore oil plat­form near La­van is­land, Iran. Oil was steady af­ter eight days of losses as in­vestors weighed the po­ten­tial out­come of an Opec meet­ing this week­end against a big­ger-than-ex­pected gain in Amer­i­can crude stock­piles.

SIN­GA­PORE: Oil was steady af­ter eight days of losses as in­vestors weighed the po­ten­tial out­come of an Opec meet­ing this week­end against a big­ger-than-ex­pected gain in Amer­i­can crude stock­piles.

Fu­tures in New York were lit­tle changed, af­ter an 8.8% drop since Oct 26. The Or­ga­ni­za­tion of Petroleum Ex­port­ing Coun­tries and its al­lies may dis­cuss the pos­si­bil­ity of cut­ting pro­duc­tion again next year when they meet in Abu Dhabi on Sun­day.

Mean­while, gov­ern­ment data showed US stock­piles rose by 5.78 mil­lion bar­rels last week, com­pared with ex­pec­ta­tions for a two-mil­lion-bar­rel gain.

Oil lost steam last month fol­low­ing spec­u­la­tion that the US will grant ex­emp­tions to some na­tions to pur­chase Ira­nian sup­plies even af­ter it hits the Opec pro­ducer with sanc­tions.

Eight na­tions have re­ceived the waivers, which in­dus­try con­sul­tant FGE es­ti­mates will add 1.2 mil­lion to 1.7 mil­lion bar­rels a day of oil from the Per­sian Gulf state, higher than mar­ket ex­pec­ta­tions.

“In­vestors are as­sess­ing the in­di­ca­tions of ris­ing in­ven­to­ries in the US as well as tak­ing into con­sid­er­a­tion what could pos­si­bly come out of this week’s Opec meet­ing,” said Kim Kwan­grae, a com­modi­ties an­a­lyst at Sam­sung Fu­tures Inc. “While the mar­ket has taken a bear­ish path with the ex­emp­tions of Amer­i­can waivers on some Ira­nian oil pur­chases, prices will fur­ther be pres­sured down­wards with in­creas­ing sup­plies.”

West Texas In­ter­me­di­ate crude for De­cem­ber de­liv­ery traded 18 cents higher at US$61.85 a bar­rel on the New York Mer­can­tile Ex­change at 7:44 am in Lon­don. The con­tract fell 0.9% to US$61.67 on Wed­nes­day. To­tal vol­ume traded was 23% be­low the 100-day av­er­age.

Brent fu­tures for Jan­uary set­tle­ment gained 19 cents to US$72.26 a bar­rel on the Lon­don­based ICE Fu­tures Europe ex­change. Prices lost 1.5% in the pre­vi­ous two ses­sions.

The global bench­mark crude traded at a US$10.27 premium to WTI for the same month.

Opec and its al­lied sup­pli­ers will dis­cuss sce­nar­ios in­clud­ing mak­ing the sec­ond pro­duc­tion U-turn to curb out­put next year at a gather­ing in Abu Dhabi, ac­cord­ing to del­e­gates.

Pres­sure is likely to de­crease from the US to lower prices as the coun­try’s midterm elec­tions are over. Pro­duc­ers in­clud­ing Saudi Ara­bia and Rus­sia had opened taps fol­low­ing un­prece­dented po­lit­i­cal pres­sure from Pres­i­dent Don­ald Trump.

In Amer­ica, na­tion­wide crude in­ven­to­ries rose last week for a sev­enth week, the longest stretch of gains since early March, ac­cord­ing to En­ergy In­for­ma­tion Ad­min­is­tra­tion data.

Do­mes­tic pro­duc­tion surged to a record 11.6 mil­lion bar­rels a day, while stock­piles at the na­tion’s stor­age hub of Cush­ing, Ok­la­homa, in­creased by 2.42 mil­lion bar­rels. — Bloomberg

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