Oil rises after expected reduction in OPEC, but markets remain wary

SINGAPORE (Reuters) – Oil prices rose on Monday and major exporters, Saudi Arabia, are expected to push the OPEC producers' club to cut their supply by the end of the year.

Despite this, the market remains depressed by signs of slowing demand following deep trade disputes between the world's two largest economies, the United States and China.

LCoC1, the international benchmark for oil prices, traded at $ 67.29 a barrel at 00:45 GMT, up 53 cents or 0.8% from their last close.

United States West Cluster (WTI) crude oil futures were up 61 cents, or 1.1%, to $ 57.07 per barrel.

"The market's bullish radar is still waiting for OPEC + to deliver a substantial number of cuts," said Stephen Innes, head of Asia-Pacific transactions at Oanda in Singapore.

The Organization of the Petroleum Exporting Countries (OPEC), which is de facto directed by Saudi Arabia, is calling on the cartel of producers and its allies to cut the bid by 1 million to 1.4 million barrels per day adapt to slower demand growth and prevent oversupply.

Despite Monday's gains, crude prices remained almost a quarter below their recent highs in early October, driven by soaring supply and slower demand growth.

On the demand side, Japanese crude oil imports in October – ranking fourth in the world, but in structural decline due to dwindling population and improved energy efficiency – were down 7.7% from the same month last year to 2.77 million barrels a day, the Ministry of Finance announced Monday.

This occurs as the supply increases in the United States.

US energy companies added two oil platforms on November 16, bringing the total to 888, the highest level since March 2015, a weekly report from energy services firm Baker Hughes said Friday.

Increased drilling activity points to a further increase in US crude oil production C-OUT-T-EIA, which has already jumped nearly a quarter this year, to a record 11.7 million bpd.

Frightened by the surge in supply and the slowdown in demand, financial markets are increasingly wary of the oil sector as fund managers reduce their upside bets on futures and options to the lowest level. level since June 2017, the US Commodity Futures Trading Commission (CFTC) said Friday.

The speculation group reduced its combined futures and options positions on US crude and Brent crude during the week ended November 13th, the lowest since June 27, 2017.