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"Saudi Arabia has stepped in front of the Oil market bears proactively announcing they will reduce exports by 500,000 barrels per day in December", says Stephen Innes Head of Trading Asia-Pacific at OANDA.

A majority of OPEC and allied oil exporters support a cut in the global supply of crude, Oman Oil Minister Mohammed bin Hamad al-Rumhi said on Sunday.

"If all things remain equal, and they nearly certainly will not as things will change - it is a dynamic market - then the technical analysis we saw yesterday. tells us that there will need to be a reduction of supply from October levels approaching a million barrels", Falih said.

That eased fears that new US sanctions on Iran would cause shortages and drive prices higher.

This as global crude prices dropped by as much as 20 per cent since last month, easing the concerns of energy security and economic sustainability in countries that rely on oil imports - such as India, China, and Japan.

Senate Minority Leader Chuck Schumer, a New York Democrat, had previously supported legislation that would remove an existing immunity shield that prevents the oil cartel and its members' national oil companies from being sued under USA antitrust law.

Although OPEC was unable to reach an agreement with other non-OPEC producers who also attended the Sunday meeting, OPEC made it known that it is going ahead with the proposed cuts come next year.

Global benchmark Brent crude oil futures were at $71.11 per barrel at 0051 GMT, up 93 cents, or 1.3 percent from their last close.

"We in Abu Dhabi have been very optimistic and, in a way, bullish about the market situation", Abu Dhabi National Oil Co. "Moreover, OPEC+ are talking about cuts as they think oil can go lower, so I think worries about oil spiking higher are a bit exaggerated". OPEC members may be weighing oil production cuts again, anxious that a slowing global economy will undermine prices, but in the group's Middle East heartland producers are spending billions to add output capacity for the long term.

He added that the production increase seen from May, where Opec+, as the alliance is called, added over a million bpd back into the markets had "achieved a purpose" as a three-digit price level would have been "very, very uncomfortable", he added.

"Sanctions didn't cut so much out of the market as anticipated", Falih said. Speaking in Abu Dhabi, he said that Saudi Arabia's announcement would now "probably firm the price".

Oil producers will continue to evaluate the market data prior to the Vienna summit, "but if we need to trim production by one million bpd, we will do", Falih added.

The rig count is an indicator that U.S. crude production, already at a record 11.6 million barrels per day (bpd), will increase further.

Even as the Saudis have promised to reduce output, USA production reached 11.6 million bpd in the most recent week, a new record. Iraq has boosted production to a record and its more fragile economy may make it loathe to reverse course.

Commerzbank, Germany's second-largest lender, said Friday that oil producers must act to prevent prices tumbling.

Crude oil prices attempted to rebound on Monday, rising in the morning after Saudi Arabia signaled production cuts.