Oil Culminates as market is stand by for OPEC Supply Numbers

Oil Culminates as market is stand by for OPEC Supply Numbers
Oil Culminates as market is stand by for OPEC Supply Numbers
Friday February 10, 2017

Crude oil futures were marginally higher in the mid-afternoon trade in Asia Friday, as now market participants are awaiting data from the International Energy Agency and OPEC to support the growing positive sentiment around compliance of the deal.

At 2:15 pm Singapore time (0615 GMT), ICE April Brent crude futures were up 12 cents/b (0.22%) from Thursday's settle at $55.75/b, while March NYMEX light sweet crude was up 11 cents/b (0.21%) at $53.11/b.

After the recent rise in prices, post release of the data from the Energy Information Administration for the week ended February 3, showing a build in US crude stocks and falling gasoline stocks, prices are now holding to see what the supply figures from producer countries indicate.

The International Energy Agency is set to release its monthly report later on Friday, which will provide details on the demand outlook, OPEC production estimate, etc.

OPEC's version of the monthly report is set to be released on Monday, February 13.

Market participants were optimistic about producer countries continuing to comply with their agreed levels of production cut. The price recovery from Wednesday's low both reflected and reinforced the market's confidence that OPEC production cuts will overcome all obstacles, with a hard evidence of a tighter market only a matter of time

Moreover, was reported that Russia production's output in January fell 117,000 b/d, or more than twice the initial plan, though that was based on ministry data and not independent assessments.

Some investors, however, continued to view the compliance of the deal with skepticism, said analysts. At energy event was reported that producer-countries are so far maintaining a high level of compliance with their production cut deals, but that this will likely fall to a range of 50%-60% in the coming months.


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