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.
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.
Crude oil traders now turn their eyes toward Istanbul where OPEC and non-OPEC nations meet at the World Energy Congress in Turkey to finalize a global oil production cut. Even as some express skepticism about the impact of this OPEC and non-OPEC accord, prices have reacted positively.
The two current major factors driving energy prices are Hurricane Matthew and the big energy producer meeting in Istanbul that was said to be engineered by Saudi Deputy Crown Prince Mohammed bin Salman.
Crude oil prices are on track to rise for the seventh consecutive day. For the first time since June, a barrel of oil in the U.S. costs more than $50 oer barrel again. From around $44.50 a barrel towards the end of last month to today’s current high of $50.50, WTI has thus risen a solid $6 or in percentage terms more than 13%.
The energy complex is trading higher after the EIA released its latest weekly oil inventory report. The data showed that total crude &and product stocks decreased by 11.210/mmbls to 1379.697/mmbls for week ending Sept. 30.