SlavkoSereda/iStock via Getty Images
Crude oil futures rose Monday to settle at their highest levels in a week, as OPEC’s monthly market report eased some concerns about weakening demand.
“Global oil market fundamentals remain strong,” OPEC said as it forecasts oil demand rising by 2.5M bbl/day this year, up by 100K bbl/day from last month’s report, citing stronger than expected growth in the U.S. and China as the main reasons for the more bullish sentiment.
Disappointing economic data last week from top crude importer China sparked demand worries, as Chinese refiners asked for less supply for December from Saudi Arabia, but the OPEC report said Chinese demand is “healthy,” with crude imports 240K bbl/day higher than in September.
Output from Iran rose 46K bbl/day in October, lifting its production to 3.12M bbl/day, OPEC said.
Front-month Nymex crude (CL1:COM) for December delivery closed +1.4% to $78.26/bbl, while front-month January Brent crude (CO1:COM) ended +1.3% to $82.52/bbl, both at their best settlement values since November 6.
ETFs: (NYSEARCA:USO), (BNO), (UCO), (SCO), (USL), (DBO), (DRIP), (GUSH), (NRGU), (USOI)
Iraq’s oil minister said he expects to reach an agreement to resume oil production from the Kurdish region within days, according to a Reuters report.
A resumption of oil exports through the Iraq-Turkey pipeline would bring 450K bbl/day of crude oil back to the market, StoneX’s Alex Hodes said, after remaining offline since March.
“A return of flows should help alleviate crude tightness and is a bearish announcement at a time that crude oil prices have been fading,” Hodes wrote.