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SINGAPORE (Reuters) – Oil prices rose 1 percent Wednesday ahead of the OPEC meeting next week during which the producers' club is expected to decide on a form of reduction in oil prices. offer to counter the emerging glut.
A flag with the logo of the Organization of Petroleum Exporting Countries (OPEC) is seen at a meeting of producing countries and OPEC producing countries in Vienna, Austria on September 22 2017. REUTERS / Leonhard Foeger
The closure of Britain's largest North Sea oilfield for repair work also supported prices, traders said.
The West Texas Intermediate (WTI) CLIC futures price was $ 52.11 per barrel at 4:48 GMT, up 55 cents, or 1.1% from their latest settlement.
Brent International LCOc1 crude oil futures advanced 57 cents, or 1%, to $ 60.78 per barrel.
The Buzzard oil field, which pumps approximately 150,000 barrels per day (b / d), was closed temporarily after the discovery of pipeline corrosion. Elgin-Franklin of Total, a smaller field connected to Forties, is also closed for maintenance. As a result, commercial sources indicated that three cargoes to be loaded in December had been canceled.
Despite Wednesday's rise, oil prices have again lost about 30% of their value since early October, penalized by an emerging supply surplus and the widespread weakness of the financial markets.
The drop in crude oil prices since October is comparable to that of 2008 and more pronounced than in 2014/2015.
(GRAPHIC: Brent crude oil prices plummet from 2008, 2014/2015 and 2018 in percentage tmsnrt.rs/2RiWkJ1)
The Organization of the Petroleum Exporting Countries (OPEC) will meet on December 6 at its headquarters in Vienna, Austria, to discuss production policy.
The OPEC meeting will follow a meeting in Argentina this weekend of the Group of 20 (G20) countries, which bring together the world's largest economies, during which the Sino-US trade dispute and oil policy should be discussed.
While most analysts expect a reduction in supply from the OPEC meeting, the climate on the oil markets remains negative.
"Option traders remain focused on downside risks following a 30% drop in WTI," said Erik Norland, Senior Economist at the CME Group Commodity Exchange, citing the higher number of traders placing positions likely to generate a new fall. crude prices than those who are betting on a rising market.
The portfolio managers reduced their combined net long-term gross futures positions by 607 million barrels in the last eight weeks, the largest reduction since at least 2013, when the current data series was launched.
The slowdown in global trade due to the Sino-US trade dispute, growing indebtedness and the strong dollar exerting pressure on emerging markets is a source of concern for global markets.
The World Trade Organization (WTO) said in its latest outlook, released Tuesday, that "trade growth is expected to slow further in the fourth quarter of 2018", with growth likely lower since October 2016.
(GRAPH: World Trade Organization (WTO) Outlook – tmsnrt.rs/2RlhEOc)
Report by Henning Gloystein; edited by Richard Pullin
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