As crude oil traders focus on rising rig counts and the potential for OPEC production cuts, a critical battle against ISIS has been unfolding in Iraq overnight. Reuters News reports that Iraqi government forces, with air and ground support from the U.S.-led coalition, launched an offensive to drive the Islamic State from the northern city of Mosul, the militants' last major stronghold in the country.
The price of crude oil climbed on Thursday, gaining support from record Chinese imports, but gains were limited after OPEC said its production had risen to the highest level in at least eight years and following reports of an increase in U.S. crude stocks.
Crude oil longs took some profits as OPEC pumped up their monthly production numbers in order to make a case for a bigger share of OPEC quota. As OPEC and non-OPEC nations have agreed to limit its total oil production to a range of 32.5 million to 33 million barrels, the breakdown of who gets to pump how much is the focus of the conversations.
OPEC reported a increase in its oil production in September to the highest in at least eight years and raised its forecast for 2017 non-OPEC supply growth, pointing to a larger surplus next year despite the group's deal to cut output.
After many ups and downs, false starts and stops, the deal they said would not get done will close today in Istanbul; Aand I will point out, I was only one of only 2 analysts in the world that in surveys predicated this deal would happen.
Oil prices jumped as much as 3% on Monday, after Russia and Saudi Arabia both said a deal between the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC members like Russia in curbing crude output was possible.