Contracts for both WTI and Brent advanced on the first day of the trading week, as the world’s largest oil importer showed an upbeat-data and supply from the Organization of Petroleum Exporting Countries (OPEC) dropped to a two-year low in November.
WTI contracts for December rose 0.51% higher to $93.17 a barrel at the time of writing on New York’s Nymex, while the European benchmark Brent climbed 0.39% to $110.12 at the same time in London.
The Chinese industrial activity rose to an 18-month high, as a separate data released show that the HSBC Purchasing Managers’ Index (PMI) for November came in at 50.8.
“Output and new order growth both increased at their strongest rates in eight months in November, but renewed job shedding led to a solid increase in outstanding business,” the report stated.
Meanwhile in Libya, the holder of Africa’s largest oil reserves, continued to be the focus for oil traders as the country’s security situation continues to weigh on the oil market. The country’s shipment dropped to 250,000 bpd towards the end of the month, from 350,000 bpd in November
Crude Futures – OPEC
Organization of Petroleum Exporting Countries (OPEC), is expected to meet in Vienna to discuss and consider adjust its production target of 30 million bpd.
Analysts are forecasting the group to increase its shipments by 700,000 bpd to 24.05 million barrels in the period ended December 14, reports from Oil Movements confirmed last week. OPEC crude production fell to a two-year low in November, analysts said. OPEC’s output slipped by 245,000 to 30.007 bpd million in November, down from 30.252 million recorded in October.
Meanwhile, negotiations between the western powers and Iran continue this week to ease the extensive nuclear program in the country in return of an estimated $7 billion-worth of sanctions.
The US crude output increased by the shale oil fields, which climbed to 8.02 million bpd in the week ended November 22, data from the Energy Information Administration confirmed.
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