Oil Costs Stable as OPEC says Market is Rebalancing

U.S. West Texas Intermediate (WTI) crude futures were trading at $49.66 per barrel at 0054 GMT, up 8 cents, or 0.16 percent, from their final shut.

Brent crude futures , the global benchmark for oil costs, were up 5 cents, or 0.1 percent, at $55 .84 a barrel.

Traders stated that oil costs received support from a statement by the organization of the Petroleum Exporting nations (OPEC) pronouncing that oil markets had re-balanced following years of oversupply.

"There's clear proof that the market is rebalancing," OPEC's secretary basic Mohammad Barkindo advised Reuters on Monday.

"The process of global destocking continues, each onshore and offshore, with positive trends in recent months displaying not handiest a quickening of the process however a tremendous drainage of oil tanks across all areas," he introduced.

OPEC has led an effort to cut output this year so as to finish years of overproduction that created a huge supply overhang.

The savings were implemented in January and are set to expire on the end of March 2018. Talks are underway to increase the availability restraint to quilt all of next 12 months.Analysts said the provision cuts, as well as strong demand, would likely present value make stronger heading in opposition to the end of the year.

U.S. bank JP Morgan mentioned in a observe to shoppers that previous "considerations that OPEC compliance would fade into the fourth quarter now appear unfounded" and that "stronger than assumed economic growth bargains the possibility of tight market prerequisites to continue if OPEC extends the current deal for every other 9 months."

The bank additionally stated political disputes between the U.S. and Iran might drive oil costs larger.

Short-term worth give a boost to was also coming from the U.S., where some 85 p.c of U.S. Gulf of Mexico oil manufacturing, or 1.49 million barrels a day, is offline in the aftermath of hurricane Nate, the U.S. division of the interior's Bureau of safety and Environmental Enforcement (BSEE) mentioned late on Monday.

Oil companies evacuated group of workers from Gulf systems and curtailed output ahead of the storm, which hit the area last weekend.

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