After one of the most bearish weeks in months, oil prices stabilized on Monday supported by OPEC remarks of the probability of additional actions to bring back market balance.

Oil production platforms in the Gulf of Mexico resumed production after Hurricane Nate had halted over 90 percent of crude output in that area. The regeneration kept price increases stable.

“Oil is having trouble to find direction. Mixed signals keep investors busy changing their minds,” stated Hans van Cleef, senior energy economist, adding, “There is a good chance that we will continue to trade a bit sideways in the coming weeks up to the OPEC meeting.”

The Organization of the Petroleum Exporting Countries is meeting on November 30 in Vienna, to discuss its agreement of reducing output in order to sustain the market.
OPEC Secretary-General Mohammad Barkindo stated that discussions for an extension of the agreement beyond March 2018 were underway as well as more nations joining the agreement. Barkindo also stated OPEC members and other producers may have to take “extraordinary measures” to guarantee the market is in balance for the long term.

Global benchmark Brent crude was flat at $55.62 a barrel ending last week 3.3 percent lower, its largest weekly loss since summer of 2016.

U.S. West Texas Intermediate crude futures traded at $49.53, a gain of 24 cents.

THE MORNING REPORT

Start your workday the right way with the news that matters most.

Your information is 100% secure with us and will never be shared Disclaimer & Privacy Policy

WTI’s losses last week summed up to 4.6 percent.

OPEC members are sticking to arranged cuts, Saudi Arabia stated it had cut crude distributions for November by 560,000 barrels per day and Iraq’s oil minister stated it was dedicated to its OPEC production goal.

According to the U.S. Commodity Futures Trading Commission, money managers increased their bullish investments on U.S. crude futures again for the third week in a row.