OPEC likely to extend supply cuts

Iran’s Crude Oil Price Up 4.5

Iran’s Crude Oil Price Up 4.5

Hedge funds increased their holdings of Brent crude futures and options in the latest week, pushing their bet on a sustained rally in the oil price to the highest on record.

He added that while he had not heard any OPEC members discussing the possibility of not extending the deal, the time and duration of an extension was still to be decided.

The American Petroleum Institute (API) reports weekly crude and refined product inventories later on Tuesday.

OPEC and other non-OPEC producers will meet on November 30 in Vienna to decide on oil output policy.

In May, Opec producers agreed to extend production cuts for a period of nine months until March, but stuck to production cuts of 1.2 million bpd agreed in November previous year. "We are not going to meet in that quarter unless it is extraordinary", Mazroui said at an energy industry conference.

Bahrain's oil minister, Sheikh Mohammed bin Khalifa al-Khalifa, said on Tuesday he sees no reason why the supply cut agreement between oil producing countries should not be extended on November 30. Strong Support holds at $56.21.

It also said industrialised countries' September commercial oil inventories, a key marker OPEC uses to measure market balance, fell by 23.6 million barrels to 2.985 billion barrels.

OPEC Secretary-General Mohammad Barkindo, speaking at the same event, said participants in the deal were committed to achieving market stability. Despite this prediction, the IEA still predicts that oil prices will hover near $83 per barrel in the next 5-10 years.

Middle East tensions grew over the weekend, fueling expectations of supply disruptions in the region after Bahrain said Iran was behind an explosion to its main oil pipeline.

Crude oil stocks in the USA are seen down 2.850 million barrels, while distillates are expected to post a drop of 1.775 million barrels and gasoline inventories are seen down 1.025 million barrels.

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