Oil above $57, heads for biggest weekly gain since September
Oil is heading for its biggest weekly gain since mid-September after US crude oil stockpiles extended their declines and after the cartel OPEC maintained that efforts are re-balancing the market were progressing well.
Brent, the internationally traded benchmark crude climbed above $57 per barrel Friday morning in Europe as traders say they expect OPEC to maintain its grip on exports by its members and allies including Russia.
One other news helping the market came from China where September crude oil imports climbed to the second highest level on record, while natural gas imports rose nearly 5% according to official customs data released on Friday, as the world’s top energy consumer shored up fuel supplies for winter.
According to the International Energy Agency, IEA, the global supply and demand for crude oil will be largely balanced next year as growth in consumption helps to erase a three-year old overhand of unused fuel.
The agency also said Thursday in its report that global expansion in consumption will mostly offset a steep rise in output, especially by shale producers in America and Canada.
In its monthly oil market report, the Paris-based IEA said it continues to see global demand for crude growing by 1.6m bbl/day in 2017, before moderating to 1.4m bbl/day in 2018.
A similar picture was painted by Gary Ross, founder of PIRA Energy who said the global crude surplus that caused a price rout has largely been absorbed, resulting in higher crude prices.
Ross, head of Global Oil Analytics for S&P Global Platts, said on Thursday Brent crude could make a new short-term high, perhaps above 60 $/bbl by year end and will rise to 70 $/bbl within the next five years, he said, speaking to reporters at the annual PIRA client seminar in New York.
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