Economy

United States crude closes at highest level since 2015

United States crude closes at highest level since 2015”

Oil prices have been on the rise ever since the Oil of the Petroleum Exporting Countries (OPEC) announced it has plans to extend its 1.8 million barrels per day (BPD) cap to the end of 2018, a deal which could be finalised between de facto leader Saudi Arabia and Russian Federation in Vienna on 30 November.

"In just a few years, EVs have gone from being completely unaffordable, impractical and not particularly nice, to representing a valid option for a niche pool of customers", OPEC said in the report.

Vandana Hari, a market analyst and founder of Vanda Insights, said in a weekend report emailed to UPI that a slight dip in USA production, OPEC discipline and a steady rise in global demand means the floor price for Brent crude oil is probably now around $55 per barrel.

"Moreover, global oil demand is estimated to plateau around this level in the second half of the 2030s", OPEC said.

The producers are in the process of inviting other countries to the November 30 meeting, OPEC's Mohammad Barkindo told reporters on Tuesday, with a view to joining the deal.

OPEC and rivals including Russian Federation have been cutting output in 2017 to clear a glut.

If OPEC ministers delay or dilute a decision on the production cuts, that could reignite oversupply fears and shave as much as $5 per barrel off the price for Brent crude oil, she said. While up from 32.70 million bpd in 2016, the 2019 figure is down from 33.70 million bpd forecast in last year's report.

OPEC raised its forecast for the supply of tight oil, which includes US shale.

But OPEC obviously thinks demand will keep rising. The Brent managed to hit a massive $65 in midday trading, the highest level since June of 2015. That could be telling as ministers from OPEC sit down later this month to discuss the fate of their multilateral production deal, which helped pull oil prices from last year's historic lows.

Global output of tight oil will reach 7.0 million bpd by 2020 and 9.22 million bpd in 2030, the report said, as Argentina and Russian Federation join North America as producers.

Brazil, which produces 2.65 million barrels of crude per day (bpd), by law can not control output.

Market watchers were looking ahead to weekly energy data from the American Petroleum Institute at 4:30 p.m. EDT (2030 GMT), which was forecast to show a drawdown in crude and product inventories for last week.



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