World News: 02:42 GMT Tuesday 3rd December 2019. [Yahoo Business News Feed via SPi World News]
(Bloomberg) -- Oil held gains as OPEC crude output dropped before the group and its allies meet this week to set the path for future production cuts.Futures added 0.4% in New York even as Asian stocks slumped following the announcement of fresh tariffs by President Donald Trump. Output from the Organization of Petroleum Exporting Countries slipped by 110,000 barrels a day last month, according to data compiled by Bloomberg, while analysts forecast U.S. crude fell last week for the first time since mid-October.Crude has climbed since early October on signs the U.S.-China are close to a breakthrough on an initial trade deal. Iraq said on Sunday that OPEC+ may consider deepening output cuts, contrary to expectations, while Saudi Arabia has signaled it will no longer tolerate cheating by other members on quotas.“OPEC+ doesn’t seem like it’s going to make a further cut in its agreed output,” Kim So Hyun, a commodities strategist at Daishin Securities Co., said by phone in Seoul. “If the group extends the current plans without making deeper cuts, prices are likely to retreat to near $50 a barrel.”West Texas Intermediate for January delivery added 22 cents to $56.18 a barrel on the New York Mercantile Exchange as of 10:41 a.m. Singapore time. The contract rose 1.4% to close at $55.96 on Monday.Brent for February settlement gained 20 cents, or 0.3%, to $61.12 a barrel on the London-based ICE Futures Europe Exchange. The contract added 43 cents to close at $60.92 on Monday. The global benchmark crude traded at a $4.99 premium to WTI for the same month.See also: Faded Texas Oil Field Offers Austerity Lesson for U.S. ShaleThe drop in OPEC’s production last month was led by Angola, which has been suffering a decline for the past four years. The nation’s output fell to the lowest in more than a decade. Iran’s output, already squeezed to the lowest since the 1980s by U.S. sanctions, dwindled even further.U.S. crude inventories probably shrank by 1.5 million barrels last week, according to a Bloomberg survey. If that’s confirmed by Energy Information Administration data on Wednesday, it would be the first decrease in six weeks.\--With assistance from James Thornhill.To contact the reporter on this story: Heesu Lee in Seoul at email@example.comTo contact the editors responsible for this story: Serene Cheong at firstname.lastname@example.org, Ben Sharples, Andrew JanesFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
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