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Oil settles up 1% as OPEC report dampens demand concerns

Published Nov 12, 2023 08:09PM ET Updated Nov 13, 2023 03:52PM ET
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By Shariq Khan

BENGALURU (Reuters) - Oil prices rose by more than 1% on Monday after OPEC's monthly market report eased worries about waning demand and a U.S. probe into suspected violations of Russian oil sanctions raised concerns about potential supply disruptions.

Brent crude futures rose by $1.09, or 1.3%, to settle at $82.52 a barrel, while U.S. West Texas Intermediate (WTI) crude futures also gained $1.09, or 1.4%, to settle at $78.26 a barrel.

In a monthly report, OPEC said oil market fundamentals remained strong and blamed speculators for a drop in prices. OPEC made a slight increase to its 2023 forecast for global oil demand growth and stuck to its relatively high 2024 prediction.

"The OPEC monthly oil market report appeared to push back against demand concerns, referencing overblown negative sentiment around Chinese demand while raising demand growth forecasts for this year and leaving them unchanged for next," Craig Erlam, senior market analyst at OANDA, said in a note.

Oil prices were also lifted by reports of the U.S. Treasury Department cracking down on Russian oil exports, UBS analyst Giovanni Staunovo said.

Treasury sent notices to ship management companies for information on 100 vessels it suspects of violating Western sanctions on Russian oil, a source who has seen the documents told Reuters.

The U.S. Energy Information Administration (EIA) said last week the country's crude oil production this year will rise by slightly less than expected and demand will fall. On Monday, the EIA forecast U.S. oil output would decline in December for the second consecutive month. [EIA/RIG]

Weak economic data last week from No. 1 crude importer China fed fears of faltering demand. Chinese refiners asked for less supply for December from Saudi Arabia, the world's largest exporter.

Still, oil prices may have found a bottom after they slid about 4% last week and recorded their first three-week declining streak since May, said Fawad Razaqzada, an analyst at City Index.

"Given that oil prices have weakened in the last few weeks, Saudi Arabia and Russia will likely continue with their voluntary supply cuts into next year. This should therefore limit the downside potential," Razaqzada said.

Last week, top oil exporters Saudi Arabia and Russia, part of the group known as OPEC+, confirmed they would continue with additional voluntary oil output cuts until the end of the year as concerns over demand and economic growth continue to drag on crude markets.

The next OPEC+ meeting is scheduled for Nov. 26.

Oil settles up 1% as OPEC report dampens demand concerns
 

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Comments (9)
Paul Carlos
Paul Carlos Nov 13, 2023 12:25PM ET
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When it comes to the world of investing, Many people don't know Having an investment adviser is the best way to go about the market right now, I've been in touch with a coach for awhile now mostly cause lack the depth knowledge and mental fortitude to deal with these recurring market conditions, I've made over $57K during this dip, that made it clear there's more to the market that we have joes don't know
Paul Carlos
Paul Carlos Nov 13, 2023 12:25PM ET
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work up to a Financialist:Pamela for advice, Wsasp//No.+ / 44 (7414).....15 (3422)
Abhishek Agarwal
Abhishek Agarwal Nov 13, 2023 12:25PM ET
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I too need advisor but where to get thm?
Abhishek Agarwal
Abhishek Agarwal Nov 13, 2023 12:25PM ET
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I too need an adviser but wheee to get it?
EL LA
EL LA Nov 13, 2023 11:27AM ET
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World population now over 8 billion and they all need energy.
Rubbing Hands
Rubbing Hands Nov 13, 2023 8:43AM ET
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opec forecasted increased 2023 and 2024 oil demand. stop spreading fake news!
Dwi Okta S
DwiOkta0710 Nov 13, 2023 12:12AM ET
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Sanny?, HM i think i know who she is, she is ever live at in Jakarta, tanjung duren , indonesia lol
Dwi Okta S
DwiOkta0710 Nov 13, 2023 12:11AM ET
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Sanny?, HM i think i know who she is, their ex live at in Jakarta, tanjung duren , indonesia
Dwi Okta S
DwiOkta0710 Nov 13, 2023 12:09AM ET
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The liar of the moment lol
Derick Lim
Derick Lim Nov 12, 2023 11:53PM ET
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By middle of the week the headline will be manipulated to oil prices rebound on worries of waning supply.in US and China
Rubbing Hands
Rubbing Hands Nov 12, 2023 10:38PM ET
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china asked for more supply, these guys need to check their AI. what a joke
Rubbing Hands
Rubbing Hands Nov 12, 2023 10:36PM ET
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oil imports to China rose 7% last month. china plays games to keep inflation down and their labor competitive. everyone knows that and these writers try to deceive people
 
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