OPEC increases as OPEC and its partners discuss the reduction of supply

LONDON (Reuters) – Oil climbed Wednesday, recovering some of the slippage from the previous session, on the growing prospect of a reduction in OPEC production and allied producers at a major pace. meeting next month to support the market.

Prices climbed to $ 67 earlier in the session after Reuters reported that OPEC and its partners were discussing a proposal to cut production by up to 1.4 million barrels a day (bpd). ), a higher figure than previously mentioned by the authorities.

Brent's international benchmark, up 36 cents a barrel, was established at 65.83 USD at 1118 GMT, after falling to 65.02 USD. US crude rose 6 cents to $ 55.75.

Since mid-October, the Brent price has dropped 17.5% due to concerns over oversupply and slowing demand, representing one of the biggest declines significant since the collapse of prices in 2014.

"While the focus was on the embargo on Iran and Venezuela 's production difficulties in recent months, that is to say the risks of". an insufficient supply, the market seems more and more concerned about the prospects of too much supply, "said Swiss bank Julius Baer.

In its monthly report, the Paris-based International Energy Agency (IEA) said the implied inventory buildup for the first half of 2019 was 2 million bpd.

The IEA left its global demand growth forecast for 2018 and 2019 unchanged from last month at 1.3 million barrels per day (bpd) and 1.4 million barrels per day, respectively, but cut its forecast for non-OECD demand growth, engine of the global expansion of gasoline consumption.

Oil markets are under pressure from two sides: an increase in the supply of OPEC, Russia and other producers and growing concern about the global economic slowdown.

Production of US crude oil from its seven major shale basins is expected to hit a record 7.94 million barrels per day (bpd) in December, the Energy Information Administration (EIA) of the US Department of Energy (US) said Tuesday. Energy.

This increase in land production has allowed total crude oil production in the United States to reach a record 11.6 million bpd, making the United States the world's largest oil producer, ahead of Russia and the United States. Saudi Arabia.

Most analysts expect US production to exceed 12 million bpd in the first half of 2019.

The increase in US production contributes to the increase in inventories.

The official storage data is to be reported Wednesday to the Energy Information Administration, analysts expecting an increase of 3 million barrels of crude stocks.