Crude oil prices mixed in Asia after a U.S. holiday. One other factor is the attention pointed at the OPEC review of oil output curbs due next week.
The January contract of the U.S. West Texas Intermediate crude slid 0.26 percent at $58.38 per barrel. Conversely, Brent oil for January delivery on the ICE Futures Exchange in London rose 0.05 percent to $63.45 per barrel.
Baker Hughes released weekly figures ahead of the Thanksgiving holidays. According to the report, the U.S. rig was up by nine to 747 in the week ended November 22. The monthly rig count also rose for the first time since July. This happened after crude prices almost reached their highest levels in trade since the summer of 2015.
There were a total of 10 rigs added for the month. This resulted to 923 active oil and natural gas rigs on November 22.
Crude oil prices surged higher overnight on Thursday. This cleaned up earlier losses along with optimism that the market is rebalancing by holiday-thinned trade.
The rise in crude oil price took place after the EIA’s Wednesday report stating that crude oil inventories dropped by 1.9 million barrels a week before. This was in comparison to analysts’ expectation of a 1.5 million barrel drop.
TransCanada Corp.’s announcement added to the bright outlook on oil prices. The pipeline company stated that it will be cutting oil deliveries to the U.S. by 85 percent or more with its keystone crude pipeline.
The line linking Alberta’s oil sands to U.S. refineries was closed last week after a 5,000-barrel spill in South Dakota.
Trade volumes were light on Thursday as U.S. markets closed for the Thanksgiving holiday.
OPEC Agenda Indicates Meeting for Oil Policy Setting
A draft agenda regarding OPEC’s meeting on November 30 in Vienna indicated that there are three hours already set aside for finalization of its oil policy.
During those hours, the group’s oil ministers will discuss the extension of their supply curbs. This shows that decision-making is expected to go smoothly.
Along with the members of the Organization of the Petroleum Exporting Countries, Russia and nine other producers are trying to control oil output by reducing it to 1.8 million barrels per day till March 2018.
Three hours is relatively short when compared to the group’s previously held meetings which usually reach early morning hours. This happens as arguments continue between ministers.
There are high expectations that the deal will be extended during the meeting in Vienna.
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