USA oil 'rebounding quickly' after hurricanes as Opec cuts back

USA oil 'rebounding quickly' after hurricanes as Opec cuts back

USA oil 'rebounding quickly' after hurricanes as Opec cuts back

Production by the 14 members of the Organization of the Petroleum Exporting Countries came to 32.755 millions of barrels per day (bpd) last month after 32.834 in July, it said in a report, citing secondary sources.

Harvey is still likely to be a bigger driver for the crude market, analysts at Goldman Sachs said.

USA crude futures rose 17 cents, or 0.35%, to $48.24 a barrel on the New York Mercantile Exchange.

Oil prices rose on Tuesday after OPEC forecast higher demand in 2018 and Russian Federation and Venezuela confirmed their commitment to a production-cutting deal to reduce the global crude glut. Spot gold is down 0.8 per cent at $1,335.10 an ounce while U.S. gold futures for December delivery is down 0.9 per cent at $1,339.40 an ounce. The Saudi energy minister and his Venezuelan counterpart said both their countries are exceeding full compliance with their targeted production cuts and that they shared "an optimistic outlook" on global supply and demand for crude in 2018.

In August, production rose in Nigeria, which has been exempted from output curbs, OPEC said.

Oil prices were mixed on Monday, with Hurricane Irma's continued pounding Florida raising demand fears, while USA refinery restarts and Saudi cut extension talks gave upward pressure.

The hurricane knocked out power to almost 4 million homes and businesses in Florida on Sunday. The new agreement extends the production deal for nine months until March 2018. While some oil processing has recovered, 6 percent of USA capacity still remains shut.

Crude prices are down 8.6% in the past year.

The deal agreed late a year ago to reduce output by about 1.8 million bpd until March 2018 helped to keep prices as high as $58 a barrel in January, but they have since sagged as global stocks have not fallen as quickly as expected.

"The market is assessing what is happening after the two hurricanes and there is concern that demand is down in Florida", said Miswin Mahesh, an oil market analyst at Energy Aspects.

On September 8, energy services company Baker Hughes (BHI) released its weekly U.S. crude oil rig count report. Net, we project a larger - in fact record large - crude inventory build but smaller product draws in the coming week than previously.

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