Oil rises on Goldman forecast, signs producers complying with cuts

Oil rises on Goldman forecast, signs producers complying with cuts

Oil rises on Goldman forecast, signs producers complying with cuts

Beyond the impact of cuts from OPEC, analysts emphasized that the willingness of non-OPEC producers to join the cutbacks was significant.

Under the deal, production will fall by nearly 1.8 million barrels per day (bpd) in a bit to reduce a fuel supply overhang that has dogged markets for over two years.

My comment below is a copy of the comment I made about the OPEC agreement of cutting its production by 1.2 million barrels a day about a week ago.

Light, sweet U.S. crude for January delivery closed at $51.90 a barrel on Friday, gaining 0.8% for the week.

Anyone hoping for a quick answer to that question may be disappointed: behind the institutions' opposing views on when the market will rebalance are differing estimates of global oil demand.

The investment bank increased its oil price outlook for the second quarter of 2017 following OPEC's agreement to cut production.

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Schramm and her chapter have raised enough money from sponsors to place 250 wreaths on the headstones of fallen service members. Since Christmas 2007, Mariano and her organization have tried to provide a wreath for every veteran buried in the cemetery.

In addition, Russian Energy Minister Alexander Novak said on Friday that all Russian oil companies have agreed to cut crude output under Moscow's agreements with OPEC. Goldman Sachs Group Inc increased its second-quarter oil price forecasts and predicted inventories would return to normal levels by the middle of 2017 as Opec production cuts ripple through the market.

It stated that on the back of this, amongst others, the global Brent crude oil futures were trading at $54.29/b, up 75 cents, or 0.5 per cent from their last settlement.

The report equally noted that the higher prices came after Kuwait, an OPEC member, notified customers that it would cut supplies from January as part of the deal by OPEC and non-OPEC members to cap production by nearly 1.8mbd and reduce a fuel supply overhang that has dogged markets for over two years.

Kuwait Petroleum Corporation (KPC) had already said on Tuesday it had officially notified its customers of a cut in their contractual crude oil supplies for January.

"Given the paucity of timely supply data, the market has to take a lot on faith", said Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas SA in London.

"While the market will eventually need to see some evidence of an actual reduction in output, talk of production cuts and notices of lower allocations sent to refiners are sufficient to support market sentiment for now", Tim Evans, Citi Futures' energy futures specialist, said in a note. The North Sea oil climbed 1.6 per cent this week.

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