SINGAPORE (Reuters) – Oil prices rose about 1 percent on Monday as it was expected that Saudi Arabia's top exporter would push OPEC and possibly Russia's producer club to curb supply at the end of the year.
A rainbow is over a pumpjack during a sunset outside of Scheibenhard, near Strasbourg, France, on October 6, 201
Brent crude oil futures for Brent averaged 67.41 USD / hr at 676 GMT (65) cents, or 1 percent from their last close.
US. West Texas Intermediate (WTI) commodity futures rose 76 cents, or 1.4 percent, to $ 57.22 a barrel.
"Oil prices continued to recover … (as) The market will pay close attention to the potential impact of a (bid) cut," said Sukrit Vijayakar, director of Indian energy consulting firm Trifecta.
The Organization of Petroleum Exporting Countries (OPEC), which is de facto led by Saudi Arabia, is pushing for the producer community and its allies to cut $ 1 million to 1.4 million barrels per day (bpd) of supply to adapt to the slowdown in growth demand growth and prevent oversupply.
Russian Energy Minister Alexander Novak said Monday that Russia, which is not an OPEC member, planned to sign a partnership agreement with the group and that details would be discussed at the OPEC meeting in Vienna on 6 December.
Despite Monday's gains, crude oil prices remain nearly a quarter below their recent highs in early October, weighed down by rising supply and slowing demand growth.
This happened in part after Washington had granted unexpectedly comprehensive exemptions from the sanctions imposed on Tehran in November to Iran's major oil buyers, especially in Asia.
Japanese refinery maker Fuji Oil is ready to resume Iranian crude oil sales after Japan received one of these waivers.
Japan had stopped all purchases of Iranian oil before receiving the waiver in early November.
Nevertheless, markets remained reluctant to engage in deep trade disputes between the world's two largest economies, the US and China, after finding no solution at the Asia-Pacific Economic Cooperation (APEC) last weekend.
Hussein Sayed, chief market strategist at Futures Brokerage FXTM, said APEC's US comments "suggest that a deal between President Trump and President Xi is unlikely to emerge when leaders meet in the course of the US Month at the G20 summit ".
GRAPHIC: Oil drilling, production and storage in the US tmsnrt.rs/2PBfE7z
MORE DRILLING, MORE OIL
Meanwhile, oil production in the United States is rising.
US. Energy companies added two rigs during the week ending November 16, bringing the total to 888. This is the highest level since March 2015, said a weekly report from energy services company Baker Hughes on Friday.
Rising drilling activity points to a further increase in oil production in the US, which has already risen nearly a quarter this year, to a record 11.7 million Bpd.
Financial markets are being deterred by a rise in supply and declining demand as financial managers lower their optimistic stakes in crude oil futures and options to their lowest level since June 2017, the US commodity futures trading commission (CFTC) said Friday.
The speculator group reduced its combined futures and option positions to US and Brent crude during the week ending November 13, the lowest level since June 27, 2017.
Henning Gloystein's report; Editing by Joseph Radford and Christian Schmollinger