Oil prices rose Monday to the highest level in seven months after major manufacturers said at a Vienna meeting that the global market was on its way to rebalance.
Brent futures in November rose 35 cents to $ 57.21 a barrel at 0927 GMT, the highest level since February 23
The US crude petroleum raw material delivered in November dropped 8 cents to $ 50.58, but it is not far from the latest four-month ups.
Oil exporting countries, Russia and several other producers have reduced production by about 1.8 million barrels a day (BPD) since the beginning of 2017, which has increased oil prices by about 15 percent over the last three months.
Oil Minister Kuwait, Essam al-Marzouq, chairing a monitoring meeting at the Joint Ministerial in Vienna on Friday said that production constraints help to reduce global oil retains its five-year average, the OPEC target.
Russia’s energy minister said it was not expected to reach January’s decision to extend production boundaries beyond the end of March, although other ministers advised to take a decision before the end of 2017.
Iran expects to maintain total oil and condensate exports of about 2.6 million barrels per day by the end of 2017, a senior national oil official, while the oil minister at Energy UAE said compliance with the halt was 100 percent.
Nigeria earns below the contracted production rate, the oil minister said [ND5N1HP014]
“Based on the current IEA estimates, the oil market is more or less balanced in the second half of the year,” Commerzbank said in a statement. “In order to keep stocks shrinking, the oil market should show a shortage, so optimism seems overwhelming.”
Decrease in production from OPEC has resulted in increased oil yields in the United States, which reduced US oil prices in relation to the increase in Brent futures.
Investors have also studied the events in North Korea. US Treasury Secretary Steve Mnuchin said on Sunday that President Donald Trump wanted to escape the nuclear war with North Korea.