Oil steady after OPEC+ meeting as U.S. stimulus hopes face Libyan supply boost

In this news, we discuss the Oil steady after OPEC+ meeting as U.S. stimulus hopes face Libyan supply boost.

NEW YORK (Reuters) – Oil stabilized on Monday, weighed down by concerns over the surge in coronavirus cases around the world and Libya’s plan to boost production, but bolstered by hopes of a budget package American.

Analysts also focused on a meeting of the OPEC + ministerial follow-up committee on Monday. Russian Energy Minister Alexander Novak said the committee recommended fully sticking to the group’s global deal to cut oil production.

Brent LCOc1 crude futures fell 22 cents to $ 42.71 per barrel at 1:45 p.m. EDT (5:45 p.m. GMT). West Texas Intermediate (WTI) US crude CLc1 futures fell 2 cents to $ 40.86 a barrel.

Saudi Arabia, the largest member of the Organization of the Petroleum Exporting Countries, said no one should doubt the group’s commitment to provide support, while three sources from producing countries said an increase production planned from January could be canceled if necessary.

OPEC +, a grouping of OPEC and allies including Russia, is slowing oil production by 7.7 million barrels per day (b / d), against 9.7 million b / d, and is expected to cut reductions by an additional 2 million bpd in January.

“This group has shown, especially this year, that they have the flexibility to adapt to changing circumstances when necessary. We will not shirk our responsibilities in this regard, ”Saudi Energy Minister Prince Abdulaziz bin Salman said.

Weighing on the markets, Libya dramatically increased production after the easing of a blockade by eastern forces in September. The Abu Attifel oil field, with a capacity of 70,000 bpd, was scheduled to start restarting on October 24 after being shut down for months, two engineers said.

Meanwhile, coronavirus cases around the world topped 40 million on Monday, according to a Reuters tally. Many European governments are tightening the bolts to curb the spread of the virus, renewing concerns over demand for oil.

“This latest round of tight restrictions will inevitably hamper economic growth and hamper the recovery in fuel demand,” said Stephen Brennock of oil broker PVM.

Hopes for a new US stimulus package have given prices some support, House of Commons Speaker Nancy Pelosi said on Sunday she was optimistic about the possibility of passing legislation on a broad program. relief before the elections.

Bank of America has projected that Brent and WTI will average $ 44 and $ 40 per barrel in 2020, respectively, and $ 50 and $ 47 per barrel in 2021.

Meanwhile, the frenzy of oil buying in China earlier this year is expected to slow in the fourth quarter. Chinese refiners slowed their processing rates in September.

Reporting by Stephanie Kelly in New York; additional reporting by Bozorgmehr Sharafedin in London and Florence Tan in Singapore; Edited by Marguerita Choy and Mark Heinrich

Original © Thomson Reuters

Originally posted 2020-10-19 22:16:11.

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