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Reuters
By Henning Gloystein
SINGAPORE, Nov. 19 (Reuters) – Oil prices rose about 1 percent Monday as traders wait for the country's largest exporter, Saudi Arabia, to urge OPEC to reduce its supply towards 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.
Futures on WTI (West Texas Intermediate) crude rose 71 cents, or 1.3 percent, to $ 57.17 a barrel.
"The bullish market is still waiting for OPEC + to deliver a substantial number of cuts," said Stephen Innes, head of Asia Pacific trading at Oanda, a futures broker.
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 gains on Monday, crude prices remained almost a quarter below their recent highs in early October, driven by soaring supply and slower growth in demand.
This comes in part after Washington granted large oil customers in Iran, mainly in Asia, derogations of an unexpected magnitude to the sanctions that it reimposed on Tehran in November.
The Japanese refiner Fuji Oil is expected to resume its purchases of Iranian crude after Japan has received one of these exemptions, industry sources in the sector said.
Japan had stopped all its purchases of Iranian oil before receiving the waiver in early November.
Meanwhile, oil production in the United States is rising.
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 crude oil production in the United States, 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.
GRAPHIC: drilling, production and storage of oil in the United States
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