Oil prices rose on Monday as key US refineries began restarts following Hurricane Harvey, which may help revive crude oil processing, while fuel prices fell as Hurricane Irma is likely to clip demand for gasoline and diesel.
To take note of, both Saudi energy minister Khalid al-Falih and his Venezuelan counterpart, Eulogio del Pino, reportedly said their two countries were already exceeding their commitments under the output cut deal. Worldwide benchmark Brent crude LCOc1 dropped by 35 cents to $53.49 per barrel from the previous close.
The Organization of the Petroleum Exporting Countries, of which Saudi Arabia is the largest member, and 10 other producers including Russian Federation first agreed late a year ago to cut about 2% of global oil production. Brent crude oil futures for November delivery LCOc1 were up 5 cents at $53.73 a barrel while benchmark US West Texas Intermediate crude CLc1 advanced by 32 cents to $47.80. Lower crude oil prices have a negative impact on oil producers and drillers such as Carrizo Oil & Gas (CRZO), Warren Resources (WRES), Atwood Oceanics (ATW), Transocean (RIG), and Diamond Offshore (DO).More news: Mexico Earthquake: Magnitude 8 Earthquake Hits Southern Mexico, Tsunami Warning Issued
In August, production rose in Nigeria, which has been exempted from output curbs, OPEC said. The new agreement extends the production deal for nine months until March 2018.
In its monthly report, the Organization of the Petroleum Exporting Countries also said the two hurricanes that hit the United States in recent weeks would have a "negligible" impact on demand. While some oil processing has recovered, 6 percent of US capacity still remains shut.
On average, analysts polled by S&P Global Platts expect the EIA to report a climb of 10.1 million barrels in crude supplies, along with declines in gasoline stocks of 4 million and distillate stocks of 300,000 barrels. "A similar production level is also anticipated for September", the Saudi ministry said.More news: Hillary Stands By Her 'Deplorables' Remark
The kingdom and Kazakhstan said such an extension "would be considered in due course as market fundamentals may dictate", according to a separate Saudi statement.
Traders will be watching for OPEC's monthly oil report Tuesday, as well as preliminary data on USA production.More news: Aaron Donald ends holdout, still out Week 1 for Rams
- Eli Gold previews Alabama's home opener with Fresno State
- Lubbock Family Evacuates Hurricane Irma from the Caribbean
- Justice Department Asks Supreme Court to Uphold Refugee Ban
- Cairn Homes PLC (CRN) Given Outperform Rating at Credit Suisse Group
- Sen. Rubio says Hurricane Irma has potential to be "worst-case scenario"
- Rush Limbaugh forced to flee "liberal hoax" Hurricane Irma
- France's Macron Lays Out Plan For Reshaping Europe During Athens Visit
- Breaking down TCU vs. Arkansas
- Lions Rookie WR Kenny Golladay is KILLING IT
- UFC 215: Results and best moments