Investing.com - Financial Markets Worldwide

Crude oil rises after OPEC says market to be balanced in 2016

Published 2015-11-09, 08:21 p/m
© Reuters. Crude oil rises after OPEC says market to be balanced in 2016
LCO
-
CL
-

TOKYO, Nov 10 (Reuters) - Oil prices rose in early Asian
trade on Tuesday after the head of OPEC forecast a more balanced
market next year and the U.S. energy department said domestic
production is likely to fall for an eight consecutive month.
U.S. crude CLc1 rose 19 cents to $44.06 a barrel by 0104
GMT, after falling about 1 percent on Monday to $43.87 for a
fourth consecutive decline.
Brent crude LCOc1 , the global benchmark, was up 11 cents
at $47.30 a barrel. The contract slipped 0.5 percent on Monday
to $47.19 a barrel, also falling for four trading days in a row.
The declines have been driven by mounting evidence of
stockpiling, but the comments by OPEC Secretary-General Abdullah
al-Badri on Monday provided a bullish tone to the market.
"The expectation is that the market will return to more
balance in 2016," al-Badri said in a speech in the Qatari
capital Doha.
"We see global oil demand maintaining its recent healthy
growth. We see less non-OPEC supply. And we see an increase in
the demand for OPEC crude," Badri said.
Most of the oil supply increases in recent years have come
from high-cost production, Badri said, in a reference to supply
sources such as U.S. shale oil.
Shale production is expected to fall for an eighth
consecutive month in December, according to a forecast on Monday
from the U.S. Energy Information Administration (EIA).
Total output is set to decline by 118,000 barrels per day
(bpd) in December, the biggest monthly decline on record, to
4.95 million bpd, the least since September 2014, according to
EIA data going back to 2007.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.