Global oil supply to rise in 2020

Russian President Vladimir Putin

Russian President Vladimir Putin

The comments, along with remarks from Saudi Arabia, bolstered expectations the deal will be renewed.

WTI crude oil -0.3% to $53.82/bbl, Brent -0.9% to $62.74/bbl.

US crude output C-OUT-T-EIA has risen by 1.6 million barrels per day (bpd) over the past year, to a record of 12.4 million bpd, making the United States the world's biggest oil producer ahead of Russian Federation and Saudi Arabia.

"The revisions imply a 300,000 barrel per day reduction in our current global oil demand outlook of 1.3 million barrels per day year-on-year for this year", the British bank said.

"Brent futures continue rising. after the Saudi Arabian Energy Minister expressed confidence that OPEC+ producers will prolong their output cuts program through the second half of 2019", said Han Tan, analyst at futures brokerage FXTM.

Looks like everyone is focusing on the upcoming meeting of the Organization of Petroleum Exporting Countries (OPEC) which is due on 25-26 July.

On the production side, Russian Federation said on Monday it might support an extension of supply cuts that have been in place since January, warning oil prices could fall as low as $30 per barrel if producers supply too much crude.

But Novak no doubt wants an agreement, saying he could not rule out a drop in oil prices to $30/bbl if the deal is not extended, citing a risk that oil producers pump out too much crude and prices fall sharply.

The OPEC plus Russian Federation production agreement has helped rescue low oil prices, which collapsed to around $30 a barrel in 2016.

Nonetheless, "even planned and unintentional supply restrictions of more than 4 million barrels per day (bpd) have not been able to support prices as economic considerations took over in the last two weeks", he added.

Traders said crude prices were rising following statements by OPEC's biggest producer Saudi Arabia on Friday that the group was close to agreeing extending supply cuts. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy.

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