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Oil exceeds $ 60 while OPEC and help in case of failure of the North Sea



Oil still exceeded $ 60 a barrel on Wednesday, underpinned by expectations that OPEC and its partners will decide next week to cut their supply, helped by a drop in production in the North Sea.

The Organization of Petroleum Exporting Countries, Russia and other allies meet on December 6 and 7. OPEC officials told Reuters that producers were discussing a reduction in supply of 1 to 1.4 million barrels a day.

The global benchmark, Brent, rose 53 cents to 60.74 dollars a barrel at 09:19 GMT and traded at 61.27 dollars. US crude added 41 cents to 51.97 dollars.

"The OPEC must cut if it wants the market to be a little less oversupplied in the first half of 2019," said Olivier Jakob, an analyst at Petromatrix, although he added that the recovery was limited. "We do not make significant movements."

Despite Wednesday's hike, Brent fell 30% after a four-year high above $ 86 a barrel in early October, driven by concerns that demand will outstrip demand in 2019 as growth accelerates. economic slows down.

The decline since October is to date comparable to the fall in prices in 2008 and stronger than that of 2014-2015, which prompted OPEC to agree on production restrictions to support the market.

The OPEC meeting in Vienna will follow a meeting of the Group of 20 (G20) countries in Argentina this weekend, during which an oil policy should be discussed, which could potentially lay the foundations for An agreement with OPEC.

The market has also benefited from support from a supply disruption in the North Sea, which is home to the crude underlying the Brent contract.

The Buzzard oil field, the largest in the United Kingdom, was closed temporarily after the discovery of pipeline corrosion. As a result, trade sources indicated that three shipments of December Forties crude oil had been canceled.

"Few would bet against further disruptions," said Stephen Brennock of oil broker PVM, citing the impact of the blackout on cargo shipments.

A weekly report showing an increase in US crude stocks, the tenth consecutive week of gains, limited the recovery.

The American Petroleum Institute, an industry group, said Tuesday that US crude oil inventories rose 3.5 million barrels, more than analysts expected. The government's official supply report is expected Wednesday at 15:30 GMT.


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