Oil prices stable

AMSTERDAM. Oil prices stabilised yesterday after one of the most bearish weeks in months, propped up by OPEC comments signalling the possibility of further action to restore market balance in the long term.

Oil production platforms in the Gulf of Mexico started returning to service after Hurricane Nate had forced the shutdown of more than 90 percent of crude output in the area. The prospective restarts kept price gains in check.

“Oil is having trouble to find direction. Mixed signals keep investors busy changing their minds,” said Hans van Cleef, senior energy economist at ABN Amro.

“There is a good chance that we will continue to trade a bit sideways in the coming weeks up to the OPEC meeting.”

The Organisation of the Petroleum Exporting Countries is due to meet in Vienna on November 30, when it will discuss its pact to reduce output in order to prop up the market.

OPEC Secretary-General Mohammad Barkindo said on Sunday that consultations were under way for an extension of the agreement beyond March 2018 and that more oil-producing nations may join the pact, possibly at the November meeting.

He also said OPEC members and other producers may have to take some “extraordinary measures” to ensure the market is in balance in the long term.

In a speech provided for the Reuters Global Commodities Summit this week, Barkindo said he saw clear evidence the oil market was rebalancing.

Global benchmark Brent crude LCOc1 was flat at $55,62 a barrel at 1353 GMT.