OPEC and its allies agreed to stick to plans to raise oil output by 400,000 barrels per day from December, despite calls from the United States for extra supply to cool rising prices.

World Business Watch: OPEC+ rebuffs US calls for speedier oil output increases

Oil prices rose more than 4 per cent Wednesday, extending gains from the previous session as improved risk appetite provided support despite data showing an unexpected rise in US oil inventories.

Brent crude futures rose $2.93, or 4.2 per cent, to $72.28 a barrel by 12:06 p.m. EDT (1606 GMT). US West Texas Intermediate (WTI) crude futures rose $3.16, or 4.7 per cent, to $70.36 a barrel, a 4.7 per cent gain.

Also read |&nbsp;<a href="https://www.wionews.com/world/major-oil-producers-agree-on-modest-output-boost-from-august-398881">Major oil producers agree on modest output boost from August</a>

Futures are rebounding after dropping around 7 per cent on Monday, following a deal by the Organization of Petroleum Exporting Countries and allies, together known as OPEC+, to boost supply by 400,000 barrels per day from August through December.

The sell-off was exacerbated by fears that a rise in cases of the <a href="https://www.wionews.com/world/delta-is-the-fastest-covid-19-variant-and-will-pick-off-the-most-vulnerable-who-393278">Delta variant</a> of the <a href="https://www.wionews.com/topics/coronavirus">coronavirus</a> in major markets like the United States, Britain and Japan would affect demand.

The price gains on Wednesday also come despite a rise in US crude stockpiles for the first time since May. Crude inventories rose unexpectedly by 2.1 million barrels last week to 439.7 million barrels, US Energy Information Administration data showed. Analysts had expected a 4.5 million-barrel drop.

Also read |&nbsp;<a href="https://www.wionews.com/world/opec-plans-new-output-policy-meeting-on-sunday-sources-say-398712">OPEC+ plans new output policy meeting on Sunday, sources say</a>

Still, gasoline and distillate inventories posted draws of 121,000 barrels and 1.3 million barrels, respectively.

"That crude oil build was obviously a surprise driven by a surge in imports and a plunge in exports," said John Kilduff, partner at Again Capital in New York. "The only positive aspects of the report remain strong gasoline demand and a rebound in distillate fuels."

JPMorgan analysts said global demand is expected to average 99.6 million barrels per day in August, up by 5.4 mbd from April. But they also said: "We only see 4Q21 demand recovering another incremental 330,000 vs a normalised 2019 baseline as colder weather sets in for the northern hemisphere and peak travel season is behind us."

Oil prices rose more than 4 per cent Wednesday, extending gains from the previous session as improved risk appetite provided support despite data showing an unexpected rise in US oil inventories.

Oil prices rose more than 4 per cent Wednesday, extending gains from the previous session as improved risk appetite provided support despite data showing an unexpected rise in US oil inventories. Brent crude futures rose $2.93, or 4.2 per cent, to $72.28 a barrel by 12:06 p.m. EDT (1606 GMT). US West Texas Intermediate (WTI) crude futures rose $3.16, or 4.7 per cent, to $70.36 a barrel, a 4.7 per cent gain. Also read | Major oil producers agree on modest output boost from August Futures are rebounding after dropping around 7 per cent on Monday, following a deal by the Organization of Petroleum Exporting Countries and allies, together known as OPEC+, to boost supply by 400,000 barrels per day from August through December. The sell-off was exacerbated by fears that a rise in cases of the Delta variant of the coronavirus in major markets like the United States, Britain and Japan would affect demand. The price gains on Wednesday also come despite a rise in US crude stockpiles for the first time since May. Crude inventories rose unexpectedly by 2.1 million barrels last week to 439.7 million barrels, US Energy Information Administration data showed. Analysts had expected a 4.5 million-barrel drop. Also read | OPEC+ plans new output policy meeting on Sunday, sources say Still, gasoline and distillate inventories posted draws of 121,000 barrels and 1.3 million barrels, respectively. "That crude oil build was obviously a surprise driven by a surge in imports and a plunge in exports," said John Kilduff, partner at Again Capital in New York. "The only positive aspects of the report remain strong gasoline demand and a rebound in distillate fuels." JPMorgan analysts said global demand is expected to average 99.6 million barrels per day in August, up by 5.4 mbd from April. But they also said: "We only see 4Q21 demand recovering another incremental 330,000 vs a normalised 2019 baseline as colder weather sets in for the northern hemisphere and peak travel season is behind us."

Oil climbs 4% despite rise in US inventories

Closing out its worst day since March this year oil prices slumped $5 a barrel on Monday, after an OPEC+ agreement to boost output stoked fears of a surplus just as rising COVID-19 infections once again threaten demand.

World Business Watch: Oil prices slip after OPEC and allies reach deal to boost supply

Oil prices fell more than 1% on Monday, hit by an agreement over the weekend within the OPEC+ group of producers to boost output after an earlier pact fell apart due to objections from the United Arab Emirates (UAE).

World Business Watch: Oil falls more than 1% after OPEC+ agrees to boost supply

World's major oil producers agreed on Sunday to continue to boost output modestly from August. An Opec+ meeting agreed to raise output by 400,000 barrels per day (bpd) each month from August, the Vienna-based group said in a press statement.

The grouping will "assess market developments" in December, it said. The deal also extends a deadline on capping output from April 2022 to the end of 2022.

Earlier in July, OPEC+ members could not agree on easing production cuts due to deadlocked talk as a result of a row between Saudi Arabia and UAE.

Since May, the 23-member grouping, which also includes Russia, had raised oil output bit by bit, after slashing it more than a year ago when the coronavirus pandemic crushed demand.

The aim was to return to pre-pandemic production levels, with the alliance still pumping 5.8 million bpd less than it was before the pandemic.&nbsp;

'Consensus building'

In a rare challenge to OPEC leader Saudi Arabia, the UAE rejected the proposed deal earlier this month as "unjust," leading to a stalemate.

But in a compromise, Sunday's discussions agreed to adjust output quotas next May for the UAE, Iraq, Kuwait, Russia and Saudi Arabia itself, meaning their actual cuts will be less.

Saudi Energy Minister Abdulaziz bin Salman, who chairs the OPEC group, declined to say how the quotas were set and beneficiaries chosen, saying it had been part of "consensus-building". 
Observers had expected a deal.&nbsp;

"A flurry of talks were held on Saturday to try and close the gap," tweeted Herman Wang, an editor of S&amp;P Global Platts, which specialises in coverage of the energy industry.

Oil prices -- which had already been sliding owing to concerns about the global economy -- plummeted in April 2020 as coronavirus spread around the world and battered global consumption, transport and supply chains.

(With inputs from agencies)

World's major oil producers agreed on Sunday to continue to boost output modestly from August. An Opec+ meeting agreed to raise output by 400,000 barrels per day (bpd) each month from August, the Vienna-based group said in a press statement.

World's major oil producers agreed on Sunday to continue to boost output modestly from August. An Opec+ meeting agreed to raise output by 400,000 barrels per day (bpd) each month from August, the Vienna-based group said in a press statement. The grouping will "assess market developments" in December, it said. The deal also extends a deadline on capping output from April 2022 to the end of 2022. Earlier in July, OPEC+ members could not agree on easing production cuts due to deadlocked talk as a result of a row between Saudi Arabia and UAE. Since May, the 23-member grouping, which also includes Russia, had raised oil output bit by bit, after slashing it more than a year ago when the coronavirus pandemic crushed demand. The aim was to return to pre-pandemic production levels, with the alliance still pumping 5.8 million bpd less than it was before the pandemic. 'Consensus building' In a rare challenge to OPEC leader Saudi Arabia, the UAE rejected the proposed deal earlier this month as "unjust," leading to a stalemate. But in a compromise, Sunday's discussions agreed to adjust output quotas next May for the UAE, Iraq, Kuwait, Russia and Saudi Arabia itself, meaning their actual cuts will be less. Saudi Energy Minister Abdulaziz bin Salman, who chairs the OPEC group, declined to say how the quotas were set and beneficiaries chosen, saying it had been part of "consensus-building". Observers had expected a deal. "A flurry of talks were held on Saturday to try and close the gap," tweeted Herman Wang, an editor of S&P Global Platts, which specialises in coverage of the energy industry. Oil prices -- which had already been sliding owing to concerns about the global economy -- plummeted in April 2020 as coronavirus spread around the world and battered global consumption, transport and supply chains. (With inputs from agencies)

Major oil producers agree on modest output boost from August

OPEC+ ministers plan to hold their next meeting on Sunday to decide on output policy, three sources within the producers' group told Reuters on Saturday.

The development comes after Saudi Arabia and the United Arab Emirates (UAE) reached a compromise last week in a dispute over&nbsp;OPEC+ policy, in a move that should unlock a deal to supply more crude to a tight oil market and cool soaring prices.

Also read |&nbsp;<a href="https://www.wionews.com/world/opec-postpones-meeting-over-oil-output-impasse-new-date-not-set-396052">OPEC+ postpones meeting over oil output impasse, new date not set</a>

The Organization of the Petroleum Exporting Countries, along with Russia and other allies, a group is known as&nbsp;OPEC+, still needs to take a final decision on output policy after talks earlier this month were abandoned because of the dispute between Saudi and the UAE.

OPEC&nbsp;could not be reached for comment outside regular business hours.

Sunday's meeting will be held virtually as have all such discussions since last year.

OPEC+ last year agreed on record output cuts of almost 10 million barrels per day (bpd) to cope with a pandemic-induced slump in demand, curbs which have been gradually relaxed since then and now stand at about 5.8 million bpd.

Also read |&nbsp;<a href="https://www.wionews.com/world/opec-and-allies-set-for-another-crude-output-increase-388754">OPEC and allies set for another crude output increase</a>

The dispute between Riyadh and the UAE spilled into the open after previous&nbsp;OPEC+ talks, with both airing concerns about details of a proposed deal that would have added an extra 2 million bpd to the market and extended the pact until the end of 2022.

The objective was to ease upward pressure on oil prices that have recently climbed to 2-1/2 year highs.&nbsp;

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/opec-reiterates-global-oil-demand-forecast-for-2021-384439/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

One&nbsp;OPEC+ source said last week Riyadh had agreed to Abu Dhabi's request to have UAE's baseline - the level from which cuts under the&nbsp;OPEC+ agreement on supply curbs are calculated - set at 3.65 million bpd from April 2022, up from 3.168 million.

OPEC+ ministers plan to hold their next meeting on Sunday to decide on output policy, three sources within the producers' group told Reuters on Saturday. The development comes after Saudi Arabia and the United Arab Emirates (UAE) reached a compromise last week in a dispute over OPEC+ policy, in a move that should unlock a deal to supply more crude to a tight oil market and cool soaring prices.

OPEC+ ministers plan to hold their next meeting on Sunday to decide on output policy, three sources within the producers' group told Reuters on Saturday. The development comes after Saudi Arabia and the United Arab Emirates (UAE) reached a compromise last week in a dispute over OPEC+ policy, in a move that should unlock a deal to supply more crude to a tight oil market and cool soaring prices. Also read | OPEC+ postpones meeting over oil output impasse, new date not set The Organization of the Petroleum Exporting Countries, along with Russia and other allies, a group is known as OPEC+, still needs to take a final decision on output policy after talks earlier this month were abandoned because of the dispute between Saudi and the UAE. OPEC could not be reached for comment outside regular business hours. Sunday's meeting will be held virtually as have all such discussions since last year. OPEC+ last year agreed on record output cuts of almost 10 million barrels per day (bpd) to cope with a pandemic-induced slump in demand, curbs which have been gradually relaxed since then and now stand at about 5.8 million bpd. Also read | OPEC and allies set for another crude output increase The dispute between Riyadh and the UAE spilled into the open after previous OPEC+ talks, with both airing concerns about details of a proposed deal that would have added an extra 2 million bpd to the market and extended the pact until the end of 2022. The objective was to ease upward pressure on oil prices that have recently climbed to 2-1/2 year highs. One OPEC+ source said last week Riyadh had agreed to Abu Dhabi's request to have UAE's baseline - the level from which cuts under the OPEC+ agreement on supply curbs are calculated - set at 3.65 million bpd from April 2022, up from 3.168 million.

OPEC+ plans new output policy meeting on Sunday, sources say

Brent oil rose above $77 a barrel for the first time since 2018 after OPEC+ failed to reach an agreement on bringing back curtailed output, leaving the market with tighter supplies than expected.

World Business Watch: Brent oil jumps $77 after OPEC+ fails to reach output deal

As producers balance expectations of a recovery in demand against a possible increase in Iranian supply, OPEC+ is likely to stick to the existing pace of gradually easing oil supply curbs at a meeting on Tuesday.

World Business Watch: OPEC+ likely to stick with current supply plan, sees orderly Iran return

Oil prices rose on Thursday on optimism over a U.S. government spending plan and hopes that OPEC and its allies will keep production curbs in place when they meet on Thursday.

Brent crude was up by 91 cents, or 1.5%, at $63.65 a barrel by 0849 GMT. U.S. oil was up 99 cents, or 1.7%, at $60.15 a barrel.

Ministers from the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, a group called OPEC+, meet on Thursday to reassess output policy. 
OPEC+ will debate options from May and beyond, including a rollover of existing cuts and a gradual increase of production, three OPEC+ sources said.

OPEC+ is currently curbing output by just over 7 million barrels per day (bpd) to support prices and reduce oversupply. Saudi Arabia has added to those cuts with a further 1 million bpd.

"Given the recent wobble in prices, along with demand concerns re-emerging once again, there is a growing consensus that the OPEC+ will likely roll over current cuts for an additional month," ING analyst Warren Patterson said.

OPEC+ has trimmed its oil demand growth forecast for this year by 300,000 bpd over renewed lockdowns, making it more likely the group will agree to sustain its curbs.

France entered its third national lockdown and schools closed for three weeks to push back a third wave of COVID-19 infections that threatens to overwhelm hospitals. Several other European countries have also increased restrictions.

Oil also found some support in U.S. economic strength after President Joe Biden outlined a $2.3 trillion spending plan to invest in traditional projects such as roads and bridges alongside tackling climate change.

U.S. crude stocks also fell unexpectedly last week, helping to support oil prices, Energy Information Administration data showed.

"The inventory data ... showed that the situation is continuing to normalise on the U.S. oil market," Commerzbank analyst Eugen Weinberg said.

Other factors, including the rise of gasoline demand in the United States, also supported prices, Weinberg said.

Oil prices rose on Thursday on optimism over a U.S. government spending plan and hopes that OPEC and its allies will keep production curbs in place when they meet on Thursday.

Oil prices rose on Thursday on optimism over a U.S. government spending plan and hopes that OPEC and its allies will keep production curbs in place when they meet on Thursday. Brent crude was up by 91 cents, or 1.5%, at $63.65 a barrel by 0849 GMT. U.S. oil was up 99 cents, or 1.7%, at $60.15 a barrel. Ministers from the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, a group called OPEC+, meet on Thursday to reassess output policy. OPEC+ will debate options from May and beyond, including a rollover of existing cuts and a gradual increase of production, three OPEC+ sources said. OPEC+ is currently curbing output by just over 7 million barrels per day (bpd) to support prices and reduce oversupply. Saudi Arabia has added to those cuts with a further 1 million bpd. "Given the recent wobble in prices, along with demand concerns re-emerging once again, there is a growing consensus that the OPEC+ will likely roll over current cuts for an additional month," ING analyst Warren Patterson said. OPEC+ has trimmed its oil demand growth forecast for this year by 300,000 bpd over renewed lockdowns, making it more likely the group will agree to sustain its curbs. France entered its third national lockdown and schools closed for three weeks to push back a third wave of COVID-19 infections that threatens to overwhelm hospitals. Several other European countries have also increased restrictions. Oil also found some support in U.S. economic strength after President Joe Biden outlined a $2.3 trillion spending plan to invest in traditional projects such as roads and bridges alongside tackling climate change. U.S. crude stocks also fell unexpectedly last week, helping to support oil prices, Energy Information Administration data showed. "The inventory data ... showed that the situation is continuing to normalise on the U.S. oil market," Commerzbank analyst Eugen Weinberg said. Other factors, including the rise of gasoline demand in the United States, also supported prices, Weinberg said.

Oil up as OPEC+ meets to decide on production policy

A decision by OPEC+ to continue with an output cut would undermine consumption-led recovery and hurt consumers in oil buying nations, Indian oil minister Dharmendra Pradhan told Reuters on Friday.

The world`s third biggest oil importer and consumer, India had been urging major producers to ease output cuts and help global economic recovery from the coronavirus pandemic as well as rein in prices.

"As one of the largest crude-consuming countries, India is concerned that such actions by producing countries have the potential to undermine consumption-led recovery and more so hurt consumers, especially in our price-sensitive market," Pradhan told Reuters.

OPEC and its allies agreed on Thursday to extend most oil output cuts into April, offering small exemptions to Russia and Kazakhstan, after deciding that the demand recovery from the coronavirus pandemic was still fragile despite a recent oil price rally.

A decision by OPEC+ to continue with an output cut would undermine consumption-led recovery and hurt consumers in oil buying nations, Indian oil minister Dharmendra Pradhan told Reuters on Friday.

A decision by OPEC+ to continue with an output cut would undermine consumption-led recovery and hurt consumers in oil buying nations, Indian oil minister Dharmendra Pradhan told Reuters on Friday. The world`s third biggest oil importer and consumer, India had been urging major producers to ease output cuts and help global economic recovery from the coronavirus pandemic as well as rein in prices. "As one of the largest crude-consuming countries, India is concerned that such actions by producing countries have the potential to undermine consumption-led recovery and more so hurt consumers, especially in our price-sensitive market," Pradhan told Reuters. OPEC and its allies agreed on Thursday to extend most oil output cuts into April, offering small exemptions to Russia and Kazakhstan, after deciding that the demand recovery from the coronavirus pandemic was still fragile despite a recent oil price rally.

India says OPEC+ decision to hit consumption-led recovery, hurt customers

Saudi Arabia is considering extending its voluntary oil production cuts by one month into April, an OPEC+ source said on Thursday as the kingdom and Russia said oil markets recovery was still fragile.

Oil prices surged back towards their highest levels in more than a year with Brent trading up 5 % above $67 per barrel.

With oil above $60 a barrel, some analysts have predicted the OPEC+ group of producers will increase production by about 500,000 barrels per day (bpd) while Saudi Arabia will partially or fully end its voluntary cuts of 1 million bpd.

But both Saudi Energy Minister Prince Abdulaziz bin Salman and Russian Deputy Prime Minister Alexander Novak, lynchpins in the OPEC+ group, called for caution on Thursday.

"The uncertainty surrounding the pace of recovery has not receded," the Saudi minister said. "At the risk of sounding like a stuck record, I would once again urge caution and vigilance."

Russia`s Novak echoed those comments saying the oil market had not fully recovery and new coronavirus infections were still creating uncertainty.

Russia has been insisting on raising output to avoid prices spiking any further and lending support to shale oil output from the United States, which is not part of OPEC+.

But in February Moscow failed to raise output, despite being allowed to do so by OPEC+, because harsh winter weather hit its production at mature fields.

A source familiar with Russian thinking said Moscow wanted to raise its output by 0.125 million bpd from April.

OPEC+ cut output by a record 9.7 million bpd last year as demand collapsed due to the pandemic. As of March, it is still withholding around 7 million bpd, about 7% of world demand. The voluntary Saudi cut brings the total withheld to around 8 million bpd.

Saudi Arabia is considering extending its voluntary oil production cuts by one month into April, an OPEC+ source said on Thursday as the kingdom and Russia said oil markets recovery was still fragile.

Saudi Arabia is considering extending its voluntary oil production cuts by one month into April, an OPEC+ source said on Thursday as the kingdom and Russia said oil markets recovery was still fragile. Oil prices surged back towards their highest levels in more than a year with Brent trading up 5 % above $67 per barrel. With oil above $60 a barrel, some analysts have predicted the OPEC+ group of producers will increase production by about 500,000 barrels per day (bpd) while Saudi Arabia will partially or fully end its voluntary cuts of 1 million bpd. But both Saudi Energy Minister Prince Abdulaziz bin Salman and Russian Deputy Prime Minister Alexander Novak, lynchpins in the OPEC+ group, called for caution on Thursday. "The uncertainty surrounding the pace of recovery has not receded," the Saudi minister said. "At the risk of sounding like a stuck record, I would once again urge caution and vigilance." Russia`s Novak echoed those comments saying the oil market had not fully recovery and new coronavirus infections were still creating uncertainty. Russia has been insisting on raising output to avoid prices spiking any further and lending support to shale oil output from the United States, which is not part of OPEC+. But in February Moscow failed to raise output, despite being allowed to do so by OPEC+, because harsh winter weather hit its production at mature fields. A source familiar with Russian thinking said Moscow wanted to raise its output by 0.125 million bpd from April. OPEC+ cut output by a record 9.7 million bpd last year as demand collapsed due to the pandemic. As of March, it is still withholding around 7 million bpd, about 7% of world demand. The voluntary Saudi cut brings the total withheld to around 8 million bpd.

Saudi Arabia offers to extend oil cuts as OPEC+ weighs rollover

Members of the OPEC group of oil producers and their allies met Wednesday and expressed confidence in prospects for a global economic recovery and attendant rise in crude oil demand.

"As mass vaccination programmes continue and the macro-economic situation improves, there is a growing optimism over global oil demand," Russian Deputy Prime Minister Alexander Novak was quoted by the Ria agency as saying.

He spoke during a videoconference meeting of OPEC+'s monthly Joint Ministerial Monitoring Committee (JMMC).

A statement published after the meeting said all participants were "optimistic" for a "year of recovery in 2021".

"The gradual rollout of vaccines around the world is a positive factor for the rest of the year, boosting the global economy and oil demand," the statement said.

That optimism has been reflected in oil markets since early November, with benchmark crude contracts now trading at around $60 (50 euros) per barrel -- levels last seen in early 2020.

Prices have also been supported by OPEC+ countries agreeing to production cuts in the wake of the coronavirus-induced plunge in demand last spring.

Those cuts have continued into 2021, with a reduction of 7.2 million barrels per day in January, 7.125 million bpd planned for February and 7.05 million bpd in March.

In addition OPEC mainstay Saudi Arabia has volunteered to a cut a million extra barrels per day from its production in February and March.

"The OPEC+ production strategy is working," said analyst Jeffrey Halley of Oanda.

Few analysts had expected a dramatic JMMC meeting Wednesday, with more heated discussion on the way forward possible at the next full OPEC+ ministerial meeting on March 4.

Members of the OPEC group of oil producers and their allies met Wednesday and expressed confidence in prospects for a global economic recovery and attendant rise in crude oil demand.

Members of the OPEC group of oil producers and their allies met Wednesday and expressed confidence in prospects for a global economic recovery and attendant rise in crude oil demand. "As mass vaccination programmes continue and the macro-economic situation improves, there is a growing optimism over global oil demand," Russian Deputy Prime Minister Alexander Novak was quoted by the Ria agency as saying. He spoke during a videoconference meeting of OPEC+'s monthly Joint Ministerial Monitoring Committee (JMMC). A statement published after the meeting said all participants were "optimistic" for a "year of recovery in 2021". "The gradual rollout of vaccines around the world is a positive factor for the rest of the year, boosting the global economy and oil demand," the statement said. That optimism has been reflected in oil markets since early November, with benchmark crude contracts now trading at around $60 (50 euros) per barrel -- levels last seen in early 2020. Prices have also been supported by OPEC+ countries agreeing to production cuts in the wake of the coronavirus-induced plunge in demand last spring. Those cuts have continued into 2021, with a reduction of 7.2 million barrels per day in January, 7.125 million bpd planned for February and 7.05 million bpd in March. In addition OPEC mainstay Saudi Arabia has volunteered to a cut a million extra barrels per day from its production in February and March. "The OPEC+ production strategy is working," said analyst Jeffrey Halley of Oanda. Few analysts had expected a dramatic JMMC meeting Wednesday, with more heated discussion on the way forward possible at the next full OPEC+ ministerial meeting on March 4.

OPEC+ 'optimistic' for 2021 rebound in oil demand

Members of the OPEC group of oil producers and their partners will meet via videoconference on Monday to decide on production levels for February, hoping to turn the corner on a difficult year.

The OPEC+ ministerial meeting comes after oil consumption tanked in 2020 due to the Covid-19 pandemic and a price war between Saudi Arabia and Russia.

Despite a pick up in prices towards the end of last year, the market levels for black gold remain uncertain.

After their last summit, from November 30-December 3, the OPEC+ members agreed to increase production by half a million barrels per day in January.

Also at that meeting the 13 members of the OPEC cartel, led by Saudi Arabia, and their six allies, led by Russia, agreed to meet at the beginning of each month in order to decide on any adjustments to production volumes for the following month.

Russia and Saudi Arabia are respectively the second and third biggest oil producers in the world after the United States.

The decision illustrates OPEC's desire to maintain a strong influence on the oil market and the gravity of the situation for crude producers last year.

- 'Remaining demand uncertainty' -

Before the pandemic, OPEC members were content with two summits per year at the organisation's headquarters in Vienna.

"Finally, we saw a strong demonstration of OPEC+ will and capability to manage the market, laying the groundwork for Brent's recovery to over $50 per barrel despite remaining demand uncertainty in the market," JBC Energy analysts said in a statement.

The two contracts of reference, North Sea Brent Crude and&nbsp;West Texas Intermediate (WTI) crude both ended the week around the $50 per barrel level, far lower than the prices seen at the start of 2020 but well up on the lows seen last year.

In March, Moscow and Riyadh embarked on a brief but intense oil price war which led prices to plummet.

On April 20, West Texas Intermediate (WTI) crude collapsed to minus $40.32 per barrel -- meaning producers paid buyers to take the oil off their hands.

The climate between the two oil giants has eased since then, with the Russian and Saudi energy ministers meeting in mid-December in a display of unity.

It remains difficult, however, to predict the evolution in demand as governments begin rolling out vaccination programmes against the coronavirus.

Last month OPEC predicted a slight rebound in the market while noting continued uncertainties, particularly in the transport sector.

Despite the heft of the OPEC+ countries, countries outside the system have a major impact on the oil market; principally the United States which is still producing 11 million barrels of crude per day.

Even within its ranks, OPEC will have to pay attention to developments in the three members which have been granted exemptions from quotas -- Libya, Iran and Venezuela.

Libya's production had been almost wiped out by civil conflict but has spiked since October after the signing of a ceasefire deal.

Members of the OPEC group of oil producers and their partners will meet via videoconference on Monday to decide on production levels for February, hoping to turn the corner on a difficult year.

Members of the OPEC group of oil producers and their partners will meet via videoconference on Monday to decide on production levels for February, hoping to turn the corner on a difficult year. The OPEC+ ministerial meeting comes after oil consumption tanked in 2020 due to the Covid-19 pandemic and a price war between Saudi Arabia and Russia. Despite a pick up in prices towards the end of last year, the market levels for black gold remain uncertain. After their last summit, from November 30-December 3, the OPEC+ members agreed to increase production by half a million barrels per day in January. Also at that meeting the 13 members of the OPEC cartel, led by Saudi Arabia, and their six allies, led by Russia, agreed to meet at the beginning of each month in order to decide on any adjustments to production volumes for the following month. Russia and Saudi Arabia are respectively the second and third biggest oil producers in the world after the United States. The decision illustrates OPEC's desire to maintain a strong influence on the oil market and the gravity of the situation for crude producers last year. - 'Remaining demand uncertainty' - Before the pandemic, OPEC members were content with two summits per year at the organisation's headquarters in Vienna. "Finally, we saw a strong demonstration of OPEC+ will and capability to manage the market, laying the groundwork for Brent's recovery to over $50 per barrel despite remaining demand uncertainty in the market," JBC Energy analysts said in a statement. The two contracts of reference, North Sea Brent Crude and West Texas Intermediate (WTI) crude both ended the week around the $50 per barrel level, far lower than the prices seen at the start of 2020 but well up on the lows seen last year. In March, Moscow and Riyadh embarked on a brief but intense oil price war which led prices to plummet. On April 20, West Texas Intermediate (WTI) crude collapsed to minus $40.32 per barrel -- meaning producers paid buyers to take the oil off their hands. The climate between the two oil giants has eased since then, with the Russian and Saudi energy ministers meeting in mid-December in a display of unity. It remains difficult, however, to predict the evolution in demand as governments begin rolling out vaccination programmes against the coronavirus. Last month OPEC predicted a slight rebound in the market while noting continued uncertainties, particularly in the transport sector. Despite the heft of the OPEC+ countries, countries outside the system have a major impact on the oil market; principally the United States which is still producing 11 million barrels of crude per day. Even within its ranks, OPEC will have to pay attention to developments in the three members which have been granted exemptions from quotas -- Libya, Iran and Venezuela. Libya's production had been almost wiped out by civil conflict but has spiked since October after the signing of a ceasefire deal.

New Year OPEC+ meeting to decide production levels

A panel of OPEC+, a group of leading oil producing countries, will hold informal online talks on Saturday prior to meetings scheduled for next week.

According to Reuters, OPEC+ is debating whether to ease oil output cuts from January 1, as it previously agreed, or to continue producing at the same rate amid sluggish oil demand and fallout from the coronavirus pandemic.

The letter from the OPEC said Russian Deputy Prime Minister Alexander Novak would attend Saturday's informal consultations of the Joint Ministerial Monitoring Committee's heads.

Novak was energy minister until earlier this month, leading Moscow's efforts to forge close ties with the Organisation of the Petroleum Exporting Countries and clinch the deal on output cuts.

Saudi Arabia will be presented by its Energy Minister, Prince Abdulaziz bin Salman.

OPEC+ will meet on November 30 and December 1 to decide output policy for next year.

A panel of OPEC+, a group of leading oil producing countries, will hold informal online talks on Saturday prior to meetings scheduled for next week. According to Reuters, OPEC+ is debating whether to ease oil output cuts from January 1, as it previously agreed, or to continue producing at the same rate amid sluggish oil demand and fallout from the coronavirus pandemic.

A panel of OPEC+, a group of leading oil producing countries, will hold informal online talks on Saturday prior to meetings scheduled for next week. According to Reuters, OPEC+ is debating whether to ease oil output cuts from January 1, as it previously agreed, or to continue producing at the same rate amid sluggish oil demand and fallout from the coronavirus pandemic. The letter from the OPEC said Russian Deputy Prime Minister Alexander Novak would attend Saturday's informal consultations of the Joint Ministerial Monitoring Committee's heads. Novak was energy minister until earlier this month, leading Moscow's efforts to forge close ties with the Organisation of the Petroleum Exporting Countries and clinch the deal on output cuts. Saudi Arabia will be presented by its Energy Minister, Prince Abdulaziz bin Salman. OPEC+ will meet on November 30 and December 1 to decide output policy for next year.

OPEC+ panel to hold informal online talks on Nov 28

OPEC, Russia and allies agreed on Saturday to extend record oil production cuts until the end of July, prolonging a deal that has helped crude prices double in the past two months by withdrawing almost 10% of global supplies from the market.

The group, known as OPEC+, also demanded countries such as Nigeria and Iraq, which exceeded production quotas in May and June, compensate with extra cuts in July to September.

OPEC+ had initially agreed in April that it would cut supply by 9.7 million barrels per day (bpd) during May-June to prop up prices that collapsed due to the coronavirus crisis. Those cuts were due to taper to 7.7 million bpd from July to December.

"Demand is returning as big oil-consuming economies emerge from pandemic lockdown. But we are not out of the woods yet and challenges ahead remain," Saudi Energy Minister Prince Abdulaziz bin Salman told the video conference of OPEC+ ministers.

Benchmark Brent crude climbed to a three-month high on Friday above $42 a barrel, after diving below $20 in April. Prices still remain a third lower than at the end of 2019.

"Prices can be expected to be strong from Monday, keeping their $40 plus levels," said Bjornar Tonhaugen from Rystad Energy.

Saudi Arabia, OPEC`s de facto leader, and Russia have to perform a balancing act of pushing up oil prices to meet their budget needs while not driving them much above $50 a barrel to avoid encouraging a resurgence of rival U.S. shale production.

It was not immediately clear whether Saudi Arabia, the United Arab Emirates and Kuwait would extend beyond June their additional, voluntary cuts of 1.18 million bpd, which are not part of the deal.

BULGING INVENTORIES

The April deal was agreed under pressure from U.S. President Donald Trump, who wants to avoid U.S. oil industry bankruptcies.

Trump, who previously threatened to pull U.S. troops out of Saudi Arabia if Riyadh did not act, spoke to the Russian and Saudi leaders before Saturday`s talks, saying he was happy with the price recovery.

While oil prices have partially recovered, they are still well below the costs of most U.S. shale producers. Shutdowns, layoffs and cost cutting continue across the United States.

"I applaud OPEC-plus for reaching an important agreement today which comes at a pivotal time as oil demand continues to recover and economies reopen around the world," U.S. Energy Secretary Dan Brouillette wrote on Twitter after the extension.

As global lockdowns ease, oil demand is expected to exceed supply sometime in July but OPEC has yet to clear 1 billion barrels of excess oil inventories accumulated since March.

Rystad`s Tonhaugen said Saturday`s decisions would help OPEC reduce inventories at a rate of 3 million to 4 million bpd in July-August. "The quicker stocks fall, the higher prices will get," he said.

Nigeria`s petroleum ministry said Abuja backed the idea of compensating for its excessive output in May and June.

Iraq, with one of the worst compliance rates in May, agreed to extra cuts although it was not clear how Baghdad would reach agreement with oil majors on curbing Iraqi output.

Iraq produced 520,000 bpd above its quota in May, while overproduction by Nigeria was 120,000 bpd, Angola`s was 130,000 bpd, Kazakhstan`s was 180,000 bpd and Russia`s was 100,000 bpd, OPEC+ data showed.

OPEC+`s joint ministerial monitoring committee, known as the JMMC, will meet monthly until December to review the market, compliance and recommend levels of cuts. JMMC`s next meeting is scheduled for June 18.

OPEC and OPEC+ will hold their next scheduled meetings on Nov. 30-Dec. 1.

OPEC, Russia and allies agreed on Saturday to extend record oil production cuts until the end of July, prolonging a deal that has helped crude prices double in the past two months by withdrawing almost 10% of global supplies from the market.

OPEC, Russia and allies agreed on Saturday to extend record oil production cuts until the end of July, prolonging a deal that has helped crude prices double in the past two months by withdrawing almost 10% of global supplies from the market. The group, known as OPEC+, also demanded countries such as Nigeria and Iraq, which exceeded production quotas in May and June, compensate with extra cuts in July to September. OPEC+ had initially agreed in April that it would cut supply by 9.7 million barrels per day (bpd) during May-June to prop up prices that collapsed due to the coronavirus crisis. Those cuts were due to taper to 7.7 million bpd from July to December. "Demand is returning as big oil-consuming economies emerge from pandemic lockdown. But we are not out of the woods yet and challenges ahead remain," Saudi Energy Minister Prince Abdulaziz bin Salman told the video conference of OPEC+ ministers. Benchmark Brent crude climbed to a three-month high on Friday above $42 a barrel, after diving below $20 in April. Prices still remain a third lower than at the end of 2019. "Prices can be expected to be strong from Monday, keeping their $40 plus levels," said Bjornar Tonhaugen from Rystad Energy. Saudi Arabia, OPEC`s de facto leader, and Russia have to perform a balancing act of pushing up oil prices to meet their budget needs while not driving them much above $50 a barrel to avoid encouraging a resurgence of rival U.S. shale production. It was not immediately clear whether Saudi Arabia, the United Arab Emirates and Kuwait would extend beyond June their additional, voluntary cuts of 1.18 million bpd, which are not part of the deal. BULGING INVENTORIES The April deal was agreed under pressure from U.S. President Donald Trump, who wants to avoid U.S. oil industry bankruptcies. Trump, who previously threatened to pull U.S. troops out of Saudi Arabia if Riyadh did not act, spoke to the Russian and Saudi leaders before Saturday`s talks, saying he was happy with the price recovery. While oil prices have partially recovered, they are still well below the costs of most U.S. shale producers. Shutdowns, layoffs and cost cutting continue across the United States. "I applaud OPEC-plus for reaching an important agreement today which comes at a pivotal time as oil demand continues to recover and economies reopen around the world," U.S. Energy Secretary Dan Brouillette wrote on Twitter after the extension. As global lockdowns ease, oil demand is expected to exceed supply sometime in July but OPEC has yet to clear 1 billion barrels of excess oil inventories accumulated since March. Rystad`s Tonhaugen said Saturday`s decisions would help OPEC reduce inventories at a rate of 3 million to 4 million bpd in July-August. "The quicker stocks fall, the higher prices will get," he said. Nigeria`s petroleum ministry said Abuja backed the idea of compensating for its excessive output in May and June. Iraq, with one of the worst compliance rates in May, agreed to extra cuts although it was not clear how Baghdad would reach agreement with oil majors on curbing Iraqi output. Iraq produced 520,000 bpd above its quota in May, while overproduction by Nigeria was 120,000 bpd, Angola`s was 130,000 bpd, Kazakhstan`s was 180,000 bpd and Russia`s was 100,000 bpd, OPEC+ data showed. OPEC+`s joint ministerial monitoring committee, known as the JMMC, will meet monthly until December to review the market, compliance and recommend levels of cuts. JMMC`s next meeting is scheduled for June 18. OPEC and OPEC+ will hold their next scheduled meetings on Nov. 30-Dec. 1.

OPEC, Russia extend record oil cuts to end of July

OPEC and its allies led by Russia meet on Saturday over plans to extend record oil production cuts and to push countries such as Iraq and Nigeria to comply better with existing curbs.

Nigeria's oil minister said he expected a deal on an extension, which has the backing of Saudi Arabia and Russia, to be concluded in the video conference talks despite "reservations of one or two member countries," which he did not name.

The alliance known as OPEC+ previously agreed to cut supply by a record 9.7 million barrels per day (bpd) during May-June to prop up prices that collapsed due to the coronavirus crisis. Cuts were due to taper to 7.7 million bpd from July to December.

OPEC+ sources have said Riyadh and Moscow agreed to extend existing record cuts throughout July, while they said Riyadh wanted a further extension to August and possibly even December.

Global benchmark Brent crude , which slumped below $20 a barrel in April, rose nearly 6% on Friday to end at a three-month high above $42. That is still more than a third less than the price of oil at the end of 2019.

Saturday's video conferences starts with talks between members of the Organization of the Petroleum Exporting Countries at 1200 GMT, followed by a gathering of the OPEC+ group at 1400 GMT, OPEC said on Friday.

"A formal announcement of a roll-over of the April 12 decision is expected to be made, the reservations of one or two member countries notwithstanding," Nigeria's minister of state for petroleum resources, Timipre Sylva, said in a statement.

OPEC sources said an extension of cuts was contingent on compliance as countries that produced above their quota in May and June must compensate by cutting more in future months.

Iraq, which had one of the worst compliance rates in May, according to a Reuters survey, agreed to additional cuts, OPEC sources said.

It was not clear how exactly Iraq would cut output and agree with oil majors working in the country to curtail production. Nigeria said it would also aim to reach full compliance.

OPEC and its allies led by Russia meet on Saturday over plans to extend record oil production cuts and to push countries such as Iraq and Nigeria to comply better with existing curbs.

OPEC and its allies led by Russia meet on Saturday over plans to extend record oil production cuts and to push countries such as Iraq and Nigeria to comply better with existing curbs. Nigeria's oil minister said he expected a deal on an extension, which has the backing of Saudi Arabia and Russia, to be concluded in the video conference talks despite "reservations of one or two member countries," which he did not name. The alliance known as OPEC+ previously agreed to cut supply by a record 9.7 million barrels per day (bpd) during May-June to prop up prices that collapsed due to the coronavirus crisis. Cuts were due to taper to 7.7 million bpd from July to December. OPEC+ sources have said Riyadh and Moscow agreed to extend existing record cuts throughout July, while they said Riyadh wanted a further extension to August and possibly even December. Global benchmark Brent crude , which slumped below $20 a barrel in April, rose nearly 6% on Friday to end at a three-month high above $42. That is still more than a third less than the price of oil at the end of 2019. Saturday's video conferences starts with talks between members of the Organization of the Petroleum Exporting Countries at 1200 GMT, followed by a gathering of the OPEC+ group at 1400 GMT, OPEC said on Friday. "A formal announcement of a roll-over of the April 12 decision is expected to be made, the reservations of one or two member countries notwithstanding," Nigeria's minister of state for petroleum resources, Timipre Sylva, said in a statement. OPEC sources said an extension of cuts was contingent on compliance as countries that produced above their quota in May and June must compensate by cutting more in future months. Iraq, which had one of the worst compliance rates in May, according to a Reuters survey, agreed to additional cuts, OPEC sources said. It was not clear how exactly Iraq would cut output and agree with oil majors working in the country to curtail production. Nigeria said it would also aim to reach full compliance.

OPEC, Russia meet to extend record oil cuts, push for compliance

OPEC and its allies led by Russia will meet on Saturday to discuss extending record oil production cuts and to approve a new approach that aims to force laggards such as Iraq and Nigeria to comply better with the existing curbs.

The producers known as OPEC+ previously agreed to cut supply by 9.7 million barrels per day (bpd) during May and June to prop up prices which collapsed due to the coronavirus crisis. Cuts have been due to taper to 7.7 million bpd from July to December.

Two OPEC+ sources said Saudi Arabia and Russia had agreed to extend the deeper cuts until the end of July but they said Riyadh was also pushing to extend them until the end of August.

Benchmark Brent crude, which slumped below $20 a barrel in April, climbed 2% on Friday to trade at a three-month high of nearly $41. Prices had slipped from recent highs earlier in the week on uncertainty about when OPEC+ would meet.

Saturday's meetings would start with talks between members of the Organization of the Petroleum Exporting Countries and be followed by a gathering of the OPEC+ group, an OPEC+ source said, after Algerian and Russian media reported the meetings.

Three OPEC sources said an extension to cuts was contingent on high compliance and countries that produced above quota in May and June must promise to adhere to targets and agree to compensate for any earlier overproduction by cutting more in July, August and September.

Iraq, which had one of the worst compliance rates in May according to a Reuters survey of OPEC production, agreed to the additional pledge, OPEC sources said.

"The Saudis have been pushing Baghdad hard to comply," one OPEC+ source said. "Iraq has agreed to the pledge to improve its full compliance with the cuts."

Baghdad blamed technical reasons and a recent change in its government for weak compliance in May, another OPEC source said.

OPEC and its allies led by Russia will meet on Saturday to discuss extending record oil production cuts and to approve a new approach that aims to force laggards such as Iraq and Nigeria to comply better with the existing curbs.

OPEC and its allies led by Russia will meet on Saturday to discuss extending record oil production cuts and to approve a new approach that aims to force laggards such as Iraq and Nigeria to comply better with the existing curbs. The producers known as OPEC+ previously agreed to cut supply by 9.7 million barrels per day (bpd) during May and June to prop up prices which collapsed due to the coronavirus crisis. Cuts have been due to taper to 7.7 million bpd from July to December. Two OPEC+ sources said Saudi Arabia and Russia had agreed to extend the deeper cuts until the end of July but they said Riyadh was also pushing to extend them until the end of August. Benchmark Brent crude, which slumped below $20 a barrel in April, climbed 2% on Friday to trade at a three-month high of nearly $41. Prices had slipped from recent highs earlier in the week on uncertainty about when OPEC+ would meet. Saturday's meetings would start with talks between members of the Organization of the Petroleum Exporting Countries and be followed by a gathering of the OPEC+ group, an OPEC+ source said, after Algerian and Russian media reported the meetings. Three OPEC sources said an extension to cuts was contingent on high compliance and countries that produced above quota in May and June must promise to adhere to targets and agree to compensate for any earlier overproduction by cutting more in July, August and September. Iraq, which had one of the worst compliance rates in May according to a Reuters survey of OPEC production, agreed to the additional pledge, OPEC sources said. "The Saudis have been pushing Baghdad hard to comply," one OPEC+ source said. "Iraq has agreed to the pledge to improve its full compliance with the cuts." Baghdad blamed technical reasons and a recent change in its government for weak compliance in May, another OPEC source said.

OPEC+ to meet on Saturday on extending cuts, pushing for compliance

OPEC and Russia have postponed a meeting planned for Monday until later next week, OPEC sources said on Saturday, as a row intensified between Moscow and Saudi Arabia over who is to blame for plunging oil prices.

The meeting's delay came despite pressure from US&nbsp;President Donald Trump for the Organisation of the Petroleum Exporting Countries and allies, known as OPEC+, to urgently stabilise global oil markets.

OPEC+ is working on an unprecedented oil output curb equal to about 10% of world supply, or 10 million barrels per day, in what member states expect to be a global effort that will include the United States.

Oil prices hit an 18-year low on March 30 due to sliding demand caused by government lockdowns to contain the coronavirus outbreak and the failure of OPEC and other producers led by Russia to extend an earlier deal on output curbs that expired on March 31.

Washington, however, has yet to make a commitment to join the effort and Russian President Vladimir Putin on Friday put the blame for the collapse in prices on Saudi Arabia -- prompting a firm response from Riyadh on Saturday.

"The Russian Minister of Energy was the first to declare to the media that all the participating countries are absolved of their commitments starting from the first of April, leading to the decision that the countries have taken to raise their production," Saudi Energy Minister Prince Abdulaziz bin Salman said in a statement carried by state news agency SPA.

Putin, speaking during a video conference with government officials and heads of Russian major oil producers on Friday, said the first reason for the fall in prices was the impact of the coronavirus on demand.

"The second reason behind the collapse of prices is the withdrawal of our partners from Saudi Arabia from the OPEC+ deal, their production increase and information, which came out at the same time, about the readiness of our partners to even provide a discount for oil," Putin said.

Three OPEC sources, who asked not be identified, said the emergency virtual meeting planned for Monday would likely be postponed until April 8 or 9 to allow more time for negotiations.

Sources later downplayed the Saudi-Russia row, saying the atmosphere was still positive, although there is no draft deal yet or agreement on details such as a reference level from which to make the supply cuts.

"The first problem is that we have to cut from the current production level now, not to go back to the one before the crisis," one of the OPEC sources said.

"The second issue is the Americans, they have to play a part."

Oil rises from lows

Oil recovered from the lows of $20 per barrel this week with Brent settling at $34.11 on Friday, still far below the $66 closing level at the end of 2019.

Prices had their biggest one-day gain ever on Thursday when Trump said he expected Russia and Saudi Arabia to announce a major production cut.

The United States is not part of OPEC+ and the idea of Washington curbing production has long been seen as impossible, not least because of U.S. antitrust laws.

Still, the oil crash has spurred regulators in Texas, the heart of U.S. oil production, to consider regulating output for the first time in nearly 50 years.

But US Energy Secretary Dan Brouillette, in a call with oil industry leaders on Friday, did not mention the possibility of US&nbsp;production cuts, a source who listened to the call said.

Russian Energy Minister Alexander Novak told Russian state media he understood that the United States has legal restrictions on output cuts, but it should still be flexible.

Officials from other oil producers that do not belong to OPEC+ have indicated willingness to help. Canada's Alberta province, home to the world's third-largest oil reserves, is open to joining any potential global pact

The International Energy Agency warned on Friday that a cut of 10 million bpd would not be enough to counter the huge fall in oil demand. Even with such a cut, inventories would increase by 15 million bpd in the second quarter.

OPEC and Russia have postponed a meeting planned for Monday until later next week, OPEC sources said on Saturday, as a row intensified between Moscow and Saudi Arabia over who is to blame for plunging oil prices.

OPEC and Russia have postponed a meeting planned for Monday until later next week, OPEC sources said on Saturday, as a row intensified between Moscow and Saudi Arabia over who is to blame for plunging oil prices. The meeting's delay came despite pressure from US President Donald Trump for the Organisation of the Petroleum Exporting Countries and allies, known as OPEC+, to urgently stabilise global oil markets. OPEC+ is working on an unprecedented oil output curb equal to about 10% of world supply, or 10 million barrels per day, in what member states expect to be a global effort that will include the United States. Oil prices hit an 18-year low on March 30 due to sliding demand caused by government lockdowns to contain the coronavirus outbreak and the failure of OPEC and other producers led by Russia to extend an earlier deal on output curbs that expired on March 31. Washington, however, has yet to make a commitment to join the effort and Russian President Vladimir Putin on Friday put the blame for the collapse in prices on Saudi Arabia -- prompting a firm response from Riyadh on Saturday. "The Russian Minister of Energy was the first to declare to the media that all the participating countries are absolved of their commitments starting from the first of April, leading to the decision that the countries have taken to raise their production," Saudi Energy Minister Prince Abdulaziz bin Salman said in a statement carried by state news agency SPA. Putin, speaking during a video conference with government officials and heads of Russian major oil producers on Friday, said the first reason for the fall in prices was the impact of the coronavirus on demand. "The second reason behind the collapse of prices is the withdrawal of our partners from Saudi Arabia from the OPEC+ deal, their production increase and information, which came out at the same time, about the readiness of our partners to even provide a discount for oil," Putin said. Three OPEC sources, who asked not be identified, said the emergency virtual meeting planned for Monday would likely be postponed until April 8 or 9 to allow more time for negotiations. Sources later downplayed the Saudi-Russia row, saying the atmosphere was still positive, although there is no draft deal yet or agreement on details such as a reference level from which to make the supply cuts. "The first problem is that we have to cut from the current production level now, not to go back to the one before the crisis," one of the OPEC sources said. "The second issue is the Americans, they have to play a part." Oil rises from lows Oil recovered from the lows of $20 per barrel this week with Brent settling at $34.11 on Friday, still far below the $66 closing level at the end of 2019. Prices had their biggest one-day gain ever on Thursday when Trump said he expected Russia and Saudi Arabia to announce a major production cut. The United States is not part of OPEC+ and the idea of Washington curbing production has long been seen as impossible, not least because of U.S. antitrust laws. Still, the oil crash has spurred regulators in Texas, the heart of U.S. oil production, to consider regulating output for the first time in nearly 50 years. But US Energy Secretary Dan Brouillette, in a call with oil industry leaders on Friday, did not mention the possibility of US production cuts, a source who listened to the call said. Russian Energy Minister Alexander Novak told Russian state media he understood that the United States has legal restrictions on output cuts, but it should still be flexible. Officials from other oil producers that do not belong to OPEC+ have indicated willingness to help. Canada's Alberta province, home to the world's third-largest oil reserves, is open to joining any potential global pact The International Energy Agency warned on Friday that a cut of 10 million bpd would not be enough to counter the huge fall in oil demand. Even with such a cut, inventories would increase by 15 million bpd in the second quarter.

OPEC+ meeting delayed as Saudi Arabia and Russia row over price collapse

<a href="https://www.wionews.com/business-economy/oil-gains-on-us-crude-stocks-fall-opec-comments-on-slower-us-shale-growth-262061">Oil</a> slipped towards $62 a barrel on Friday and was heading for a weekly decline as concern that a virus in China may spread, curbing travel and oil demand, overshadowed supply cuts.

The <a href="https://www.wionews.com/world/china-virus-us-confirms-first-case-of-coronavirus-death-toll-reaches-nine-275853">virus</a> has prompted the suspension of public transport in 10 Chinese cities. Health authorities fear the infection rate could accelerate over the Lunar New Year holiday this weekend when millions of Chinese travel to their homes and abroad.

Global benchmark Brent fell 2 cents to $62.02 by 0951 GMT. Brent was down about 4 per cent&nbsp;this week, its third consecutive weekly drop. US&nbsp;crude rose 6 cents to $55.65 but was also on course for a weekly decline.

"One should be prepared for negative surprises when it comes to Chinese demand," said Eugen Weinberg, analyst at Commerzbank.

"The impact of this is all the greater because the restrictions are being imposed during the busiest travel season for the Chinese."

China is the world's second-largest oil consumer so any slowdown in travel would show up on demand forecasts.

Offering some support for prices was the <a href="https://www.wionews.com/business-economy/oil-prices-fall-on-weak-demand-growth-rise-in-us-crude-stocks-226381">US&nbsp;Energy Information Administration</a>'s latest weekly supply report, which on Thursday showed that crude inventories fell 405,000 barrels in the week to January&nbsp;&nbsp;17.

Nonetheless, the upside for prices was limited. Oil inventories in the wider industrialised world are above the five-year average according to OPEC figures, which analysts say is limiting the impact on prices of supply losses.

"Such is the bearish pressure that a raft of ongoing crude supply outages are not gaining much traction," said analysts at JBC Energy in a report.

Such outages include the shutdown this week of the bulk of oil supply in <a href="https://www.wionews.com/business-economy/opecs-share-of-indian-oil-imports-fell-down-43-lowest-since-2011-263065">OPEC</a> producer Libya.

The prospect of further steps by the Organization of the Petroleum Exporting Countries and its allies, known as <a href="https://www.wionews.com/business-economy/oil-slips-as-opec-gears-up-to-confirm-supply-cut-266600">OPEC+</a>, could still offer support. OPEC+ has been mostly limiting supply since 2017 and on January&nbsp;&nbsp;1 deepened a cut in output.

Saudi Arabia's energy minister said all options are open at the next OPEC+ meeting, which is scheduled for March, including further cuts, Al Arabiya television reported.

The current OPEC+ deal expires at the end of March. Russia's No. 2 oil producer Lukoil expects it to be extended, Interfax news agency cited its chief executive as saying on Thursday.

Oil slipped towards $62 a barrel on Friday and was heading for a weekly decline as concern that a virus in China may spread, curbing travel and oil demand, overshadowed supply cuts.

Oil slipped towards $62 a barrel on Friday and was heading for a weekly decline as concern that a virus in China may spread, curbing travel and oil demand, overshadowed supply cuts. The virus has prompted the suspension of public transport in 10 Chinese cities. Health authorities fear the infection rate could accelerate over the Lunar New Year holiday this weekend when millions of Chinese travel to their homes and abroad. Global benchmark Brent fell 2 cents to $62.02 by 0951 GMT. Brent was down about 4 per cent this week, its third consecutive weekly drop. US crude rose 6 cents to $55.65 but was also on course for a weekly decline. "One should be prepared for negative surprises when it comes to Chinese demand," said Eugen Weinberg, analyst at Commerzbank. "The impact of this is all the greater because the restrictions are being imposed during the busiest travel season for the Chinese." China is the world's second-largest oil consumer so any slowdown in travel would show up on demand forecasts. Offering some support for prices was the US Energy Information Administration's latest weekly supply report, which on Thursday showed that crude inventories fell 405,000 barrels in the week to January 17. Nonetheless, the upside for prices was limited. Oil inventories in the wider industrialised world are above the five-year average according to OPEC figures, which analysts say is limiting the impact on prices of supply losses. "Such is the bearish pressure that a raft of ongoing crude supply outages are not gaining much traction," said analysts at JBC Energy in a report. Such outages include the shutdown this week of the bulk of oil supply in OPEC producer Libya. The prospect of further steps by the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, could still offer support. OPEC+ has been mostly limiting supply since 2017 and on January 1 deepened a cut in output. Saudi Arabia's energy minister said all options are open at the next OPEC+ meeting, which is scheduled for March, including further cuts, Al Arabiya television reported. The current OPEC+ deal expires at the end of March. Russia's No. 2 oil producer Lukoil expects it to be extended, Interfax news agency cited its chief executive as saying on Thursday.

Oil prices slip over China virus fears

Global oil inventories could rise sharply despite an agreement by<a href="https://www.wionews.com/business-economy/opec-gearing-up-for-deeper-oil-cuts-russia-yet-to-agree-266198"> OPEC </a>and its allies to deepen output cuts, as well as lower expected production by the United States and other non-OPEC nations, the<a href="https://www.wionews.com/business-economy/us-briefly-overtakes-saudi-arabia-as-top-oil-exporter-international-energy-agency-249182"> International Energy Agency </a>(IEA), said on Thursday.

"Despite the additional curbs and a reduction in our forecast of 2020 non-OPEC supply growth to 2.1 million barrels per day (BPD), global oil inventories could build by 700,000 BPD&nbsp;in Q1 2020," the Paris-based IEA said in a monthly report.

The Organization of the <a href="https://www.wionews.com/business-economy/oil-prices-tumble-ahead-of-opec-meeting-global-stocks-fall-265363">Petroleum Exporting Countries</a> and other producers including Russia agreed last week to rein in output by an extra 500,000 BPD in the first quarter of 2020 to balance the market and buoy prices, but they stopped short of pledging action beyond March.

Even if the group adhered strictly to the new pact and output from members beset by political troubles such as Iran, Libya and Venezuela remained steady, the IEA said that only 530,000 bpd of crude would be withdrawn from the market compared to November production.

The group's production is also set to outstrip the IEA's projection of demand for its crude by 700,000&nbsp;BPD in the first half of next year and a full million bpd in the second half.

The IEA revised down its forecast for supply growth by non-OPEC countries in 2020 by 200,000&nbsp;BPD "on a continued slowdown in the US, reduced expectations for Brazil and Ghana as well as additional cuts by (OPEC's allies)".

The biggest reduction is expected to be in US&nbsp;shale output, where operators have been cutting spending under investor pressure to improve returns.

The IEA estimates total US&nbsp;oil production growth will slow to 1.1 million BPD in&nbsp;2020 from 1.6 million bpd this year.

Global oil inventories could rise sharply despite an agreement by OPEC and its allies to deepen output cuts, as well as lower expected production by the United States and other non-OPEC nations, the International Energy Agency (IEA), said on Thursday.

Global oil inventories could rise sharply despite an agreement by OPEC and its allies to deepen output cuts, as well as lower expected production by the United States and other non-OPEC nations, the International Energy Agency (IEA), said on Thursday. "Despite the additional curbs and a reduction in our forecast of 2020 non-OPEC supply growth to 2.1 million barrels per day (BPD), global oil inventories could build by 700,000 BPD in Q1 2020," the Paris-based IEA said in a monthly report. The Organization of the Petroleum Exporting Countries and other producers including Russia agreed last week to rein in output by an extra 500,000 BPD in the first quarter of 2020 to balance the market and buoy prices, but they stopped short of pledging action beyond March. Even if the group adhered strictly to the new pact and output from members beset by political troubles such as Iran, Libya and Venezuela remained steady, the IEA said that only 530,000 bpd of crude would be withdrawn from the market compared to November production. The group's production is also set to outstrip the IEA's projection of demand for its crude by 700,000 BPD in the first half of next year and a full million bpd in the second half. The IEA revised down its forecast for supply growth by non-OPEC countries in 2020 by 200,000 BPD "on a continued slowdown in the US, reduced expectations for Brazil and Ghana as well as additional cuts by (OPEC's allies)". The biggest reduction is expected to be in US shale output, where operators have been cutting spending under investor pressure to improve returns. The IEA estimates total US oil production growth will slow to 1.1 million BPD in 2020 from 1.6 million bpd this year.

Oil market to remain oversupplied despite OPEC+ pact, says IEA

<a href="https://www.wionews.com/business-economy/oil-prices-jump-to-61-over-opec-supply-cut-reports-265782">Oil prices</a> fell on Monday after data showing China's overall exports of goods and services shrank for a fourth straight month, sending shivers through a market already concerned about damage being down to global demand by the Sino-US&nbsp;trade war.

Brent futures were down 21 cents, or 0.3 per cent, at $64.18 per barrel by 0220 GMT, after gaining about 3&nbsp;per cent&nbsp;last week on the news that OPEC and its allies would deepen output cuts.

West Texas Intermediate oil futures were down 28 cents, or 0.47&nbsp;per cent&nbsp;to $58.92 a barrel, having risen about 7&nbsp;per cent&nbsp;last week on the prospects for lower production from '<a href="https://www.wionews.com/business-economy/saudi-energy-minister-talks-opec-unity-backs-aramco-to-soar-266793">OPEC+</a>', which is made up of the Organization of the Petroleum Exporting Countries (<a href="https://www.wionews.com/business-economy/opec-gearing-up-for-deeper-oil-cuts-russia-yet-to-agree-266198">OPEC</a>) and associated producers including Russia.

Monday's sudden chill came after customs data released on Sunday showed exports from the world's second-biggest economy in November fell 1.1&nbsp;per cent&nbsp;from a year earlier - a sharp reversal from expectations for a 1per cent&nbsp;rise in a Reuters poll.

The weak start to the week came despite data showing China's crude imports jumped to a record, revealing just how deep jitters are embedded in the market over the US-China trade row that has stymied global growth and oil demand.

The sagging export data is "a casualty again of the protracted trade war," said Stephen Innes chief&nbsp;Asia market strategist at AxiTrader.

Washington and Beijing have been trying to agree on a trade deal that will end tit-for-tat tariffs, but talks have dragged on for months as they wrangle over key details.

Monday's declines also went against signs on Friday that China was easing its stance on resolving its trade dispute with the United States, confirming on Friday that it was waiving import tariffs for some soybean and pork shipments.

The price drops also put an end to a strong run in previous sessions fuelled by hopes for the OPEC+ production curb deal.

On Friday, those producers agreed to deepen their output cuts from 1.2 million barrels per day (BPD) to 1.7 million BPD, representing about 1.7 per cent&nbsp;of global production.

"What made the announcement constructive was the fact that Saudi Arabia said it will produce around 400,000 BPD below its new quota level," ING Economics said in a note.

"This would effectively take OPEC+ cuts to 2.1 million BPD," ING said.

Still, US&nbsp;production has surged since the OPEC+ cuts were first introduced in 2017 in an attempt to drain a supply glut that had long weighed on prices. American output has risen even as the drill count has fallen, reflecting more efficient well extraction.

Energy services firm Baker Hughes said in its closely watched weekly drilling report on Friday that the US&nbsp;drill count fell in the week to December&nbsp;6 a seventh week of decline.

Drilling companies cut five oil rigs, leaving a total of 661, the lowest since April 2017.

Oil prices fell on Monday after data showing China's overall exports of goods and services shrank for a fourth straight month, sending shivers through a market already concerned about damage being down to global demand by the Sino-US trade war.

Oil prices fell on Monday after data showing China's overall exports of goods and services shrank for a fourth straight month, sending shivers through a market already concerned about damage being down to global demand by the Sino-US trade war. Brent futures were down 21 cents, or 0.3 per cent, at $64.18 per barrel by 0220 GMT, after gaining about 3 per cent last week on the news that OPEC and its allies would deepen output cuts. West Texas Intermediate oil futures were down 28 cents, or 0.47 per cent to $58.92 a barrel, having risen about 7 per cent last week on the prospects for lower production from 'OPEC+', which is made up of the Organization of the Petroleum Exporting Countries (OPEC) and associated producers including Russia. Monday's sudden chill came after customs data released on Sunday showed exports from the world's second-biggest economy in November fell 1.1 per cent from a year earlier - a sharp reversal from expectations for a 1per cent rise in a Reuters poll. The weak start to the week came despite data showing China's crude imports jumped to a record, revealing just how deep jitters are embedded in the market over the US-China trade row that has stymied global growth and oil demand. The sagging export data is "a casualty again of the protracted trade war," said Stephen Innes chief Asia market strategist at AxiTrader. Washington and Beijing have been trying to agree on a trade deal that will end tit-for-tat tariffs, but talks have dragged on for months as they wrangle over key details. Monday's declines also went against signs on Friday that China was easing its stance on resolving its trade dispute with the United States, confirming on Friday that it was waiving import tariffs for some soybean and pork shipments. The price drops also put an end to a strong run in previous sessions fuelled by hopes for the OPEC+ production curb deal. On Friday, those producers agreed to deepen their output cuts from 1.2 million barrels per day (BPD) to 1.7 million BPD, representing about 1.7 per cent of global production. "What made the announcement constructive was the fact that Saudi Arabia said it will produce around 400,000 BPD below its new quota level," ING Economics said in a note. "This would effectively take OPEC+ cuts to 2.1 million BPD," ING said. Still, US production has surged since the OPEC+ cuts were first introduced in 2017 in an attempt to drain a supply glut that had long weighed on prices. American output has risen even as the drill count has fallen, reflecting more efficient well extraction. Energy services firm Baker Hughes said in its closely watched weekly drilling report on Friday that the US drill count fell in the week to December 6 a seventh week of decline. Drilling companies cut five oil rigs, leaving a total of 661, the lowest since April 2017.

Oil prices slip as weak China exports highlights trade war impact

OPEC and its allies would only ease supply curbs and pump more oil once global crude inventories fall and pricing reflects a tighter market, Saudi Arabia's energy minister told Reuters.

Saudi Arabia spearheaded a deal on Friday with Russia and the other so-called OPEC+ oil producers to deepen output cuts through the first quarter of 2020.

In his first interview with Reuters since he became energy minister in September, Prince Abdulaziz bin Salman said he expected OPEC+ producers to continue cooperating beyond March.

"The jury is still out where will we be in March," he said regarding the level of supply the market will need then.

OPEC+ producers pump more than 40% of the world's oil and have constrained output since 2017 in an effort to balance rapidly rising output from the United States.

While all oil producers would like to increase output, Saudi Arabia would only do so when it saw global inventories fall, he said. Saudi Arabia would like to see stocks within the range of the last five years and the average of 2010-2014, he added.

"The more we are inside this contour, the better..." he said, adding another indicator would be prompt oil prices moving higher than longer-dated ones, known as backwardation, which reflects a tighter market.

He said the steeper the structure was for later months, the better as it would indicate OPEC+ was doing a good job in destocking.

The OPEC+ cuts agreed on Friday run until March, while some watchers had expected them to last until June or even December 2020. Russia opposed a longer deal which some analysts interpret as a sign it may want to leave the pact soon.

Prince Abdulaziz said that was not the case and cooperation with Russia would continue. He said OPEC+ simply wanted to be more flexible in adjusting output and reacting to market needs.

"We as producers all wish for a good room to increase production... With Russia we (Saudi Arabia) are committed to a huge joint cooperation programme (besides oil)," he said.

The minister also stressed the need for producers such as Iraq and Nigeria to improve their compliance with promised cuts.

Even if their compliance did not improve, however, he said Riyadh would not raise output unilaterally but instead would wait for consultations with OPEC+ at its next meeting in early March.

"I won't take unilateral measures. I would still consult and review... It will be the group versus those who have not performed."

Brent oil&nbsp;rose 2% to more than $64 a barrel on Friday after he said that cuts agreed by OPEC+ could be as much as 2.1 million barrels per day (bpd) including Riyadh continuing to cut 400,000 bpd more than its quota.

He also said that he expected a resumption of production from oilfields jointly operated by Saudi Arabia and Kuwait "very soon."

"But it would not affect both our countries' commitments (with OPEC+ cuts)," he said.

The two countries halted output from the Khafji and Wafra oilfields in the so-called Neutral Zone more than three years ago, cutting some 500,000 bpd of supply.

Aramco value

The minister said he believed state-run oil giant Saudi Aramco is worth more its $1.7 trillion (£1.33 trillion) valuation ahead of its initial public offering set for Dec. 11.

"We believe that the value of the company is way higher than $1.7 trillion," he told Reuters, adding Aramco had fallen victim to a wider industry downturn which had dropped its valuation below the $2 trillion that Saudi Crown Prince Mohammed bin Salman had targeted.

"We believe too that once those shares are floating it would hopefully evolve that people (see) we were not wrong in terms of what we think this company is worth."Even with the lower valuation, it is the world's biggest IPO, raising $25.6 billion and topping Alibaba Group's&nbsp;$25 billion listing in 2014.

The IPO involves a stake of 1.5% and is aimed at raising funds to help diversify the kingdom away from its reliance on oil and to create jobs for a growing population.

Domestic and regional investors bid for the bulk of the shares and original plans to also list on an international stock exchange were shelved.

"I cannot wait to see the faces of people who missed that opportunity and how they will be chewing their thumbs," the minister said, calling those who invested "friends and family" set to benefit from any future rise in its value.

OPEC and its allies would only ease supply curbs and pump more oil once global crude inventories fall and pricing reflects a tighter market, Saudi Arabia's energy minister told Reuters.

OPEC and its allies would only ease supply curbs and pump more oil once global crude inventories fall and pricing reflects a tighter market, Saudi Arabia's energy minister told Reuters. Saudi Arabia spearheaded a deal on Friday with Russia and the other so-called OPEC+ oil producers to deepen output cuts through the first quarter of 2020. In his first interview with Reuters since he became energy minister in September, Prince Abdulaziz bin Salman said he expected OPEC+ producers to continue cooperating beyond March. "The jury is still out where will we be in March," he said regarding the level of supply the market will need then. OPEC+ producers pump more than 40% of the world's oil and have constrained output since 2017 in an effort to balance rapidly rising output from the United States. While all oil producers would like to increase output, Saudi Arabia would only do so when it saw global inventories fall, he said. Saudi Arabia would like to see stocks within the range of the last five years and the average of 2010-2014, he added. "The more we are inside this contour, the better..." he said, adding another indicator would be prompt oil prices moving higher than longer-dated ones, known as backwardation, which reflects a tighter market. He said the steeper the structure was for later months, the better as it would indicate OPEC+ was doing a good job in destocking. The OPEC+ cuts agreed on Friday run until March, while some watchers had expected them to last until June or even December 2020. Russia opposed a longer deal which some analysts interpret as a sign it may want to leave the pact soon. Prince Abdulaziz said that was not the case and cooperation with Russia would continue. He said OPEC+ simply wanted to be more flexible in adjusting output and reacting to market needs. "We as producers all wish for a good room to increase production... With Russia we (Saudi Arabia) are committed to a huge joint cooperation programme (besides oil)," he said. The minister also stressed the need for producers such as Iraq and Nigeria to improve their compliance with promised cuts. Even if their compliance did not improve, however, he said Riyadh would not raise output unilaterally but instead would wait for consultations with OPEC+ at its next meeting in early March. "I won't take unilateral measures. I would still consult and review... It will be the group versus those who have not performed." Brent oil rose 2% to more than $64 a barrel on Friday after he said that cuts agreed by OPEC+ could be as much as 2.1 million barrels per day (bpd) including Riyadh continuing to cut 400,000 bpd more than its quota. He also said that he expected a resumption of production from oilfields jointly operated by Saudi Arabia and Kuwait "very soon." "But it would not affect both our countries' commitments (with OPEC+ cuts)," he said. The two countries halted output from the Khafji and Wafra oilfields in the so-called Neutral Zone more than three years ago, cutting some 500,000 bpd of supply. Aramco value The minister said he believed state-run oil giant Saudi Aramco is worth more its $1.7 trillion (£1.33 trillion) valuation ahead of its initial public offering set for Dec. 11. "We believe that the value of the company is way higher than $1.7 trillion," he told Reuters, adding Aramco had fallen victim to a wider industry downturn which had dropped its valuation below the $2 trillion that Saudi Crown Prince Mohammed bin Salman had targeted. "We believe too that once those shares are floating it would hopefully evolve that people (see) we were not wrong in terms of what we think this company is worth."Even with the lower valuation, it is the world's biggest IPO, raising $25.6 billion and topping Alibaba Group's $25 billion listing in 2014. The IPO involves a stake of 1.5% and is aimed at raising funds to help diversify the kingdom away from its reliance on oil and to create jobs for a growing population. Domestic and regional investors bid for the bulk of the shares and original plans to also list on an international stock exchange were shelved. "I cannot wait to see the faces of people who missed that opportunity and how they will be chewing their thumbs," the minister said, calling those who invested "friends and family" set to benefit from any future rise in its value.

Saudi energy minister talks OPEC+ unity, backs Aramco to soar

Oil edged lower on Friday as investors awaited a meeting of OPEC and its allies later in the day which is expected to formally agree to more output curbs in early 2020.

Despite the new cuts, <a href="https://www.wionews.com/business-economy/opec-gearing-up-for-deeper-oil-cuts-russia-yet-to-agree-266198">OPEC</a> stopped short of pledging action beyond March and analysts questioned the impact of the latest curbs.

Brent futures were down 10 cents, or 0.2 per cent, at $63.29 by 0730 GMT.

West Texas Intermediate oil futures fell 7 cents, or 0.1 per cent, to $58.36 a barrel. They hit $59.12 a barrel on Thursday, the highest since the end of September.

The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia - a grouping known as OPEC+ - agreed on Thursday to more output cuts to avert oversupply early next year as economic growth stagnates amid the <a href="https://www.wionews.com/world/china-says-in-close-communication-with-us-over-trade-deal-266442">US-China trade war</a>.

The agreement, which needs to be formally adopted later on Friday, will cut an extra 500,000 barrels per day (bpd) of production, through tighter compliance and some adjustments. The group has been withholding 1.2 million bpd and the increased amount represents about 1.7 per cent&nbsp;of global oil output.

"The key question is whether these reported cuts will actually reflect fresh cuts and so help to reduce the surplus in 1Q20, or whether they will just formalise the over-compliance that we have seen from the group as a whole," ING Economics said in a note.

A panel of ministers representing OPEC and non-OPEC producers led by Russia recommended the cuts, according to Russian Energy Minister Alexander Novak.

Details need to be hammered out at Friday's OPEC+ meeting in Vienna.

Any price gains from the OPEC+ output cut are likely to benefit American producers not party to any supply curbing agreement. American drillers have been breaking production records even as they cut the number of oil rigs in operation, filling gaps in global supplies.

"North American shale supply will continue growing even in an environment with lower oil prices," Rystad Energy said in a note.

Higher oil prices are also supporting the initial public offering of Saudi Arabia's state-owned oil company, Saudi Aramco, which priced its shares on Thursday at the top of an indicated range.

The sale was the world's biggest IPO, beating Alibaba Group Holdings' $25 billion listing in 2014, but fell short of valuing <a href="https://www.wionews.com/business-economy/saudi-aramco-ipo-institutional-tranche-295-times-oversubscribed-266097">Aramco</a> at $2 trillion, a target sought by Saudi Crown Prince Mohammed bin Salman.

Foreign investors stayed away and the sale was restricted to Saudi individuals and regional investors.

Oil edged lower on Friday as investors awaited a meeting of OPEC and its allies later in the day which is expected to formally agree to more output curbs in early 2020.

Oil edged lower on Friday as investors awaited a meeting of OPEC and its allies later in the day which is expected to formally agree to more output curbs in early 2020. Despite the new cuts, OPEC stopped short of pledging action beyond March and analysts questioned the impact of the latest curbs. Brent futures were down 10 cents, or 0.2 per cent, at $63.29 by 0730 GMT. West Texas Intermediate oil futures fell 7 cents, or 0.1 per cent, to $58.36 a barrel. They hit $59.12 a barrel on Thursday, the highest since the end of September. The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia - a grouping known as OPEC+ - agreed on Thursday to more output cuts to avert oversupply early next year as economic growth stagnates amid the US-China trade war. The agreement, which needs to be formally adopted later on Friday, will cut an extra 500,000 barrels per day (bpd) of production, through tighter compliance and some adjustments. The group has been withholding 1.2 million bpd and the increased amount represents about 1.7 per cent of global oil output. "The key question is whether these reported cuts will actually reflect fresh cuts and so help to reduce the surplus in 1Q20, or whether they will just formalise the over-compliance that we have seen from the group as a whole," ING Economics said in a note. A panel of ministers representing OPEC and non-OPEC producers led by Russia recommended the cuts, according to Russian Energy Minister Alexander Novak. Details need to be hammered out at Friday's OPEC+ meeting in Vienna. Any price gains from the OPEC+ output cut are likely to benefit American producers not party to any supply curbing agreement. American drillers have been breaking production records even as they cut the number of oil rigs in operation, filling gaps in global supplies. "North American shale supply will continue growing even in an environment with lower oil prices," Rystad Energy said in a note. Higher oil prices are also supporting the initial public offering of Saudi Arabia's state-owned oil company, Saudi Aramco, which priced its shares on Thursday at the top of an indicated range. The sale was the world's biggest IPO, beating Alibaba Group Holdings' $25 billion listing in 2014, but fell short of valuing Aramco at $2 trillion, a target sought by Saudi Crown Prince Mohammed bin Salman. Foreign investors stayed away and the sale was restricted to Saudi individuals and regional investors.

Oil slips as OPEC+ gears up to confirm supply cut

<a href="https://www.wionews.com/business-economy/oil-prices-tumble-ahead-of-opec-meeting-global-stocks-fall-265363">Oil prices</a> edged higher on Thursday ahead of an OPEC meeting where members are expected to agree on deeper output cuts in an effort to prop up prices and prevent a glut next year.

Sources told Reuters that OPEC was seeking to increase production cuts by the group and its allies by Russia by more than 400,000 barrels per day (BPD) from their current level of 1.2 million BPD.

The Organization of the Petroleum Exporting Countries meets on Thursday in Vienna followed by a meeting on Friday with Russia and other producers. The group is known as <a href="https://www.wionews.com/business-economy/oil-prices-jump-to-61-over-opec-supply-cut-reports-265782">OPEC+</a>.

Brent crude&nbsp;futures were up 21 cents, or 0.33 per cent, to $63.21 a barrel at 1005 GMT. Brent surged 3.6 per cent&nbsp;on Wednesday. <a href="https://www.wionews.com/business-economy/crude-oil-prices-fall-1-on-fears-for-global-economy-233148">West Texas Intermediate</a> (WTI) crude&nbsp; futures were up 1 cents to $58.44 a barrel. They settled up 4.2 per cent&nbsp;on Wednesday.

The OPEC+ group has been curbing output since 2017 to counter surging production from the United States, now the world's biggest oil producer thanks to rapid growth in shale oil output.

Next year, rising production in other non-OPEC countries such as Brazil and Norway threatens to add to the glut.

"We expect a constructive outcome to today's meeting in terms of a prolongation of the deal, but are not yet convinced that a strong bullish surprise with a sizeable adjustment to the target level will really transpire," Vienna-based consultancy JBC Energy said in a note.

OPEC's effort to deepen cuts and increase member compliance was also driven by the group's de facto leader Saudi Arabia's hopes to see higher oil prices to support its budget and <a href="https://www.wionews.com/business-economy/worlds-biggest-initial-public-offering-saudi-aramco-seeks-171-trillion-in-valuation-262778">initial public offering </a>(IPO) of state-owned Saudi Aramco.

Oil prices surged on Wednesday on expectations of deeper OPEC cuts and data showing a large drop in US&nbsp;crude inventories last week. But prices are still roughly where they were a week ago, as concerns about a US-Chinese trade war persist.

US President <a href="https://www.wionews.com/business-economy/global-stocks-rattled-after-donald-trump-says-no-deadline-on-us-china-trade-deal-266025">Donald Trump </a>on Wednesday described trade talks with China as going "very well", a day after saying it could take until after next year's presidential election to complete an agreement.

Oil prices edged higher on Thursday ahead of an OPEC meeting where members are expected to agree on deeper output cuts in an effort to prop up prices and prevent a glut next year.

Oil prices edged higher on Thursday ahead of an OPEC meeting where members are expected to agree on deeper output cuts in an effort to prop up prices and prevent a glut next year. Sources told Reuters that OPEC was seeking to increase production cuts by the group and its allies by Russia by more than 400,000 barrels per day (BPD) from their current level of 1.2 million BPD. The Organization of the Petroleum Exporting Countries meets on Thursday in Vienna followed by a meeting on Friday with Russia and other producers. The group is known as OPEC+. Brent crude futures were up 21 cents, or 0.33 per cent, to $63.21 a barrel at 1005 GMT. Brent surged 3.6 per cent on Wednesday. West Texas Intermediate (WTI) crude futures were up 1 cents to $58.44 a barrel. They settled up 4.2 per cent on Wednesday. The OPEC+ group has been curbing output since 2017 to counter surging production from the United States, now the world's biggest oil producer thanks to rapid growth in shale oil output. Next year, rising production in other non-OPEC countries such as Brazil and Norway threatens to add to the glut. "We expect a constructive outcome to today's meeting in terms of a prolongation of the deal, but are not yet convinced that a strong bullish surprise with a sizeable adjustment to the target level will really transpire," Vienna-based consultancy JBC Energy said in a note. OPEC's effort to deepen cuts and increase member compliance was also driven by the group's de facto leader Saudi Arabia's hopes to see higher oil prices to support its budget and initial public offering (IPO) of state-owned Saudi Aramco. Oil prices surged on Wednesday on expectations of deeper OPEC cuts and data showing a large drop in US crude inventories last week. But prices are still roughly where they were a week ago, as concerns about a US-Chinese trade war persist. US President Donald Trump on Wednesday described trade talks with China as going "very well", a day after saying it could take until after next year's presidential election to complete an agreement.

Oil rises as OPEC weighs deeper output cuts

<a href="https://www.wionews.com/business-economy/oil-prices-tumble-ahead-of-opec-meeting-global-stocks-fall-265363">OPEC</a> is gearing up to deepen production cuts later this week but still needs to agree with allies such as Russia over details of a deal to support oil prices and head off a looming oil glut next year.

The Organization of the Petroleum Exporting Countries (OPEC) meets on Thursday in Vienna followed by a meeting with Russia and others, a grouping known as<a href="https://www.wionews.com/business-economy/oil-prices-jump-to-61-over-opec-supply-cut-reports-265782"> OPEC+</a>, on Friday.

OPEC+ has been curbing output since 2017 to counter oversupply as a result of booming output in the United States, which has become the world's biggest producer and is not taking part in cuts.

Next year, rising production in non-OPEC countries such as Brazil and Norway threatens to add to the glut.

OPEC's actions in the past have angered US&nbsp;President Donald Trump, who has repeatedly demanded OPEC's de facto leader Saudi Arabia to bring oil prices down if it wants Washington's to provide Riyadh with military support against arch-rival Iran.

In the past few months, Trump has remained silent on OPEC but he faces re-election in November next year when the issue of gasoline prices is likely to become a hot political topic again.

Washington's ongoing trade dispute with China has also clouded the economic and therefore oil demand outlook for 2020.

OPEC's second-largest oil producer Iraq said on Tuesday key members supported deepening cuts for OPEC+ from the current level of 1.2 million barrels per day, or 1.2 per cent of global demand.

"My understanding is that they (Saudis) do (prefer it)," Iraqi Oil Minister Thamer Ghadhban told reporters in Vienna.

The current deal expires in March and two OPEC sources have said it would be extended at least until June. Oman's oil minister Mohammed al-Rumhi said on Wednesday his delegation would recommend extending cuts until the end of 2020.

Saudi Arabia needs higher oil prices to support its budget revenue and the pending share sale of state-owned oil giant Saudi Aramco with pricing expected on Thursday.

OPEC's actions have supported oil prices at around $50-$75 per barrel over the past year and on Wednesday they traded at $61 per barrel.

Iraq's Ghadhban said new cuts could be expanded to 1.6 million BPD while OPEC sources have also said Riyadh was pressing fellow members Iraq and Nigeria to improve their compliance with quotas, which could provide an additional reduction of up to 400,000 BPD.

Not all OPEC members were convinced of the need to cut deeper, however. One OPEC delegate said the move would boost prices and help spur a new phase of US&nbsp;oil output growth.

Non-OPEC Russia has yet to agree to extend or deepen cuts from its current pledge of 228,000 BPD as its companies are arguing they are finding it tough to reduce output during winter months due to very low temperatures.

Russian Energy Minister <a href="https://www.wionews.com/world/russian-oil-contamination-crisis-is-almost-over-energy-minister-alexander-novak-225266">Alexander Novak</a> said on Tuesday that Moscow had yet to finalise its position: "Let's wait but I think the meeting, as usual, will be of a constructive nature."

A source familiar with the Russian thinking told Reuters that Moscow would "most likely" reach a consensus with OPEC this week and just needed to iron out a few outstanding issues.

One sticking point for Russia this time is how its output is measured it includes gas condensate in its figures, while other producers do not.

OPEC is gearing up to deepen production cuts later this week but still needs to agree with allies such as Russia over details of a deal to support oil prices and head off a looming oil glut next year.

OPEC is gearing up to deepen production cuts later this week but still needs to agree with allies such as Russia over details of a deal to support oil prices and head off a looming oil glut next year. The Organization of the Petroleum Exporting Countries (OPEC) meets on Thursday in Vienna followed by a meeting with Russia and others, a grouping known as OPEC+, on Friday. OPEC+ has been curbing output since 2017 to counter oversupply as a result of booming output in the United States, which has become the world's biggest producer and is not taking part in cuts. Next year, rising production in non-OPEC countries such as Brazil and Norway threatens to add to the glut. OPEC's actions in the past have angered US President Donald Trump, who has repeatedly demanded OPEC's de facto leader Saudi Arabia to bring oil prices down if it wants Washington's to provide Riyadh with military support against arch-rival Iran. In the past few months, Trump has remained silent on OPEC but he faces re-election in November next year when the issue of gasoline prices is likely to become a hot political topic again. Washington's ongoing trade dispute with China has also clouded the economic and therefore oil demand outlook for 2020. OPEC's second-largest oil producer Iraq said on Tuesday key members supported deepening cuts for OPEC+ from the current level of 1.2 million barrels per day, or 1.2 per cent of global demand. "My understanding is that they (Saudis) do (prefer it)," Iraqi Oil Minister Thamer Ghadhban told reporters in Vienna. The current deal expires in March and two OPEC sources have said it would be extended at least until June. Oman's oil minister Mohammed al-Rumhi said on Wednesday his delegation would recommend extending cuts until the end of 2020. Saudi Arabia needs higher oil prices to support its budget revenue and the pending share sale of state-owned oil giant Saudi Aramco with pricing expected on Thursday. OPEC's actions have supported oil prices at around $50-$75 per barrel over the past year and on Wednesday they traded at $61 per barrel. Iraq's Ghadhban said new cuts could be expanded to 1.6 million BPD while OPEC sources have also said Riyadh was pressing fellow members Iraq and Nigeria to improve their compliance with quotas, which could provide an additional reduction of up to 400,000 BPD. Not all OPEC members were convinced of the need to cut deeper, however. One OPEC delegate said the move would boost prices and help spur a new phase of US oil output growth. Non-OPEC Russia has yet to agree to extend or deepen cuts from its current pledge of 228,000 BPD as its companies are arguing they are finding it tough to reduce output during winter months due to very low temperatures. Russian Energy Minister Alexander Novak said on Tuesday that Moscow had yet to finalise its position: "Let's wait but I think the meeting, as usual, will be of a constructive nature." A source familiar with the Russian thinking told Reuters that Moscow would "most likely" reach a consensus with OPEC this week and just needed to iron out a few outstanding issues. One sticking point for Russia this time is how its output is measured it includes gas condensate in its figures, while other producers do not.

OPEC gearing up for deeper oil cuts, Russia yet to agree

<a href="https://www.wionews.com/business-economy/oil-prices-jump-to-61-over-opec-supply-cut-reports-265782">Oil prices</a> gained on Tuesday, as hopes rose for OPEC and its allies to agree deeper output cuts when they meet this week, although gains were limited, amid some analysts' skepticism over the achievement of further reductions.

Brent futures rose 17 cents, or 0.3 per cent, to $61.09 a barrel by 0516 GMT, after having gained 0.7 per cent&nbsp;on Monday.

US&nbsp;West Texas Intermediate crude was up 25 cents, or 0.5 per cent, at $56.21 a barrel. The contract rose by 1.4 per cent&nbsp;on Monday.

The Organization of the Petroleum Exporting Countries (<a href="https://www.wionews.com/business-economy/oil-prices-tumble-ahead-of-opec-meeting-global-stocks-fall-265363">OPEC</a>) and its allies, known as OPEC+, are discussing a plan to increase an existing supply cut of 1.2 million barrels per day (BPD) by a further 400,000 BPD and extend the pact until June, two sources familiar with the matter said.

Saudi Arabia is pushing the plan to deliver a positive surprise to the market before the initial public offering (IPO) of state-owned Saudi Aramco, the sources said.

"We believe the global oil supply-demand balance requires an extension of the current OPEC+ cuts," Goldman Sachs said in a research note.

The factors behind this view included a large increase in production from legacy non-OPEC projects and a still uncertain outlook for demand growth, it added.

The investment bank said it expected Brent to trade around $60 a barrel in 2020, "absent new growth or geopolitical shocks".

OPEC ministers will meet in Vienna on Thursday and the wider OPEC+ group will gather on Friday.

"(The) oil price is little moved today, suggesting that traders are skeptical about the additional 400,000 BPD cut on top of the extension of (the) current production cut agreement," said Margaret Yang, market analyst at CMC Markets in Singapore.

Concerns about the inability of the United States and China, the world's two biggest oil users, to reach a preliminary deal to resolve their 17-month trade dispute also weighed on oil prices, along with discouraging US&nbsp;economic data.

A senior adviser to <a href="https://www.wionews.com/americas/china-loves-ripping-off-america-says-us-president-donald-trump-218218">President Donald Trump</a> said a US-China trade deal was still possible before the end of the year, adding that the first phase of the agreement was being put to paper, although the talks have dragged on for weeks.

While OPEC may cut output,&nbsp;US&nbsp;producers have been only too happy to meet any market shortfalls, with production set successive records. Growth into 2020, though, may range between 100,000 BPD and 1 million BPD.

US&nbsp;crude inventories are expected to have declined last week, which may support prices, with analysts in a preliminary Reuters poll suggesting a contraction of 1.8 million barrels.&nbsp;

In a sign of buying interest for oil, fund managers increased net long positions in US&nbsp;crude futures and options in the week to November&nbsp;26, the US&nbsp;Commodities Futures Trading Commission said.

Oil prices gained on Tuesday, as hopes rose for OPEC and its allies to agree deeper output cuts when they meet this week, although gains were limited, amid some analysts' skepticism over the achievement of further reductions.

Oil prices gained on Tuesday, as hopes rose for OPEC and its allies to agree deeper output cuts when they meet this week, although gains were limited, amid some analysts' skepticism over the achievement of further reductions. Brent futures rose 17 cents, or 0.3 per cent, to $61.09 a barrel by 0516 GMT, after having gained 0.7 per cent on Monday. US West Texas Intermediate crude was up 25 cents, or 0.5 per cent, at $56.21 a barrel. The contract rose by 1.4 per cent on Monday. The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, are discussing a plan to increase an existing supply cut of 1.2 million barrels per day (BPD) by a further 400,000 BPD and extend the pact until June, two sources familiar with the matter said. Saudi Arabia is pushing the plan to deliver a positive surprise to the market before the initial public offering (IPO) of state-owned Saudi Aramco, the sources said. "We believe the global oil supply-demand balance requires an extension of the current OPEC+ cuts," Goldman Sachs said in a research note. The factors behind this view included a large increase in production from legacy non-OPEC projects and a still uncertain outlook for demand growth, it added. The investment bank said it expected Brent to trade around $60 a barrel in 2020, "absent new growth or geopolitical shocks". OPEC ministers will meet in Vienna on Thursday and the wider OPEC+ group will gather on Friday. "(The) oil price is little moved today, suggesting that traders are skeptical about the additional 400,000 BPD cut on top of the extension of (the) current production cut agreement," said Margaret Yang, market analyst at CMC Markets in Singapore. Concerns about the inability of the United States and China, the world's two biggest oil users, to reach a preliminary deal to resolve their 17-month trade dispute also weighed on oil prices, along with discouraging US economic data. A senior adviser to President Donald Trump said a US-China trade deal was still possible before the end of the year, adding that the first phase of the agreement was being put to paper, although the talks have dragged on for weeks. While OPEC may cut output, US producers have been only too happy to meet any market shortfalls, with production set successive records. Growth into 2020, though, may range between 100,000 BPD and 1 million BPD. US crude inventories are expected to have declined last week, which may support prices, with analysts in a preliminary Reuters poll suggesting a contraction of 1.8 million barrels. In a sign of buying interest for oil, fund managers increased net long positions in US crude futures and options in the week to November 26, the US Commodities Futures Trading Commission said.

Oil prices rise as Saudi Arabia pushes for further supply cuts

Oil prices steadied on Thursday after falling to near five-month lows in the previous session, but sentiment remained weak as markets are under pressure from rising <a href="https://www.wionews.com/business-economy/oil-prices-fall-on-rise-in-united-states-inventories-supply-worries-224433">US supply and a stalling economy</a>.

Front-month Brent crude futures were at $60.78 at 0246 GMT. That was 15 cents, or 0.3%, above last session's close.

US West Texas Intermediate (WTI) crude futures were at $51.84 per barrel, 16 cents, or 0.3%, above their last settlement.

Brent and WTI on Wednesday hit their lowest levels since mid-January at $59.45 and $50.60 per barrel, respectively, amid a surge in US crude inventories and record production, and as a global economic slowdown was starting to hit energy demand.

Despite Thursday's gains, <a href="https://www.wionews.com/world/us-says-countries-buying-iranian-oil-will-be-subject-to-sanctions-223000">oil markets have moved</a> into bear territory as defined by a 20 per cent fall from recent peaks reached in late April.

US crude production rose to a record 124.4 million barrels per day (bpd) in the week to May 31, the Energy Information Administration (EIA) said on Wednesday, an increase of 1.63 million bpd since May 2018.

Amid surging output, US commercial crude inventories surged by 6.8 million in week to May 31, to 483.26 million barrels, their highest levels since July 2017.

"Rising US production is more than offsetting the efforts from the OPEC+ and if we add the negative effect a trade war could have on energy demand the result is lower prices," said Alfonso Esparza, senior analyst at futures brokerage OANDA.

The Middle East-dominated producer club of the Organization of the Petroleum Exporting Countries (OPEC) and some non-affiliated producers including Russia, known as OPEC+, have been withholding oil supply since the start of the year to prop up the market.

But outside OPEC+ supply has been&nbsp;rising, not just in the United States.&nbsp;Oil output at Kazakhstan's Kashagan field reached a record 400,000 bpd this week, industry sources said.

Output rose after completion of maintenance in May. Prior to that, production at Kashagan was about 330,000 to 340,000 bpd.

With supply ample despite the OPEC-led cuts, much will depend on demand.

Bank of America Merrill Lynch said this week "global oil demand growth is running at the weakest rate since 2012" at below 1 million bpd, and that this was "leading the selloff" in oil prices recently.

Global economic growth took a dip late last year before recovering in early 2019, but analysts now warn growth is stalling again.

"The nascent recovery has stalled amid trade tensions," Morgan Stanley said.

The US bank said it expected this downturn to result in "the lowest growth rate since global financial crisis" of 2008/2009.

Oil prices steadied on Thursday after falling to near five-month lows in the previous session, but sentiment remained weak as markets are under pressure from rising US supply and a stalling economy.

Oil prices steadied on Thursday after falling to near five-month lows in the previous session, but sentiment remained weak as markets are under pressure from rising US supply and a stalling economy. Front-month Brent crude futures were at $60.78 at 0246 GMT. That was 15 cents, or 0.3%, above last session's close. US West Texas Intermediate (WTI) crude futures were at $51.84 per barrel, 16 cents, or 0.3%, above their last settlement. Brent and WTI on Wednesday hit their lowest levels since mid-January at $59.45 and $50.60 per barrel, respectively, amid a surge in US crude inventories and record production, and as a global economic slowdown was starting to hit energy demand. Despite Thursday's gains, oil markets have moved into bear territory as defined by a 20 per cent fall from recent peaks reached in late April. US crude production rose to a record 124.4 million barrels per day (bpd) in the week to May 31, the Energy Information Administration (EIA) said on Wednesday, an increase of 1.63 million bpd since May 2018. Amid surging output, US commercial crude inventories surged by 6.8 million in week to May 31, to 483.26 million barrels, their highest levels since July 2017. "Rising US production is more than offsetting the efforts from the OPEC+ and if we add the negative effect a trade war could have on energy demand the result is lower prices," said Alfonso Esparza, senior analyst at futures brokerage OANDA. The Middle East-dominated producer club of the Organization of the Petroleum Exporting Countries (OPEC) and some non-affiliated producers including Russia, known as OPEC+, have been withholding oil supply since the start of the year to prop up the market. But outside OPEC+ supply has been rising, not just in the United States. Oil output at Kazakhstan's Kashagan field reached a record 400,000 bpd this week, industry sources said. Output rose after completion of maintenance in May. Prior to that, production at Kashagan was about 330,000 to 340,000 bpd. With supply ample despite the OPEC-led cuts, much will depend on demand. Bank of America Merrill Lynch said this week "global oil demand growth is running at the weakest rate since 2012" at below 1 million bpd, and that this was "leading the selloff" in oil prices recently. Global economic growth took a dip late last year before recovering in early 2019, but analysts now warn growth is stalling again. "The nascent recovery has stalled amid trade tensions," Morgan Stanley said. The US bank said it expected this downturn to result in "the lowest growth rate since global financial crisis" of 2008/2009.

International oil prices fall below $60 per barrel; recovers slightly amid rising US supply, stalling economy

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