Oil prices have recovered on reports that production from US, Russia and the Organization of the Petroleum Exporting Countries (OPEC) declined during the third quarter, despite Saudi resuming supply.
December Brent crude futures LCOc1 rose $0.25 to $59.5 a barrel, while US West Texas Intermediate (WTI) crude CLc1 for November was up $0.25 at $54.32 a barrel, reported Reuters.
Oanda Asia Pacific senior analyst Jeffrey Halley was quoted by Reuters as saying: “Asia has seen some profit-taking from short-term money and other bargain hunters.
“Any rallies though are likely to be met with plenty of sellers as a slowing global economy and the recovery of Saudi production outweigh any Middle East risk factors for now.”
Saudi Aramco has restored full oil production and capacity as per the levels which the exporter maintained at its facilities before terror attacks.
The world’s largest exporter pumped about 9.78 million barrels per day (Mbpd) in August 2019. Despite Saudi’s production resumption, OPEC’s output declined to the lowest in eight years in September 2019, down 750,000bpd from August 2019’s revised figure and the lowest monthly total since 2011, as found by a separate survey conducted by Reuters.
The US and Russia also reported less output in July and September 2019, respectively. Sources said that Russia’s production decreased to 11.24Mbpd last month from 11.29Mbpd in the previous month.
A monthly report released by the US Energy Information Administration (EIA) reported a 276,000Mbpd fall in US crude production in July this year to 11.81Mbpd as federal offshore Gulf of Mexico production slid. According to a preliminary poll by the news agency, crude oil stockpiles in the US likely rose 1.1 million barrels last week, while distillate stocks slipped.