Oil prices rise as Saudi Arabia pushes for further supply cuts

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On Sunday, the 1st of December 2019, the Iraqi oil minister, Thamir Ghadhban, said that the OPEC (Organization of Petroleum Exporting Countries), a 14-member pact of crude oil exporting nations alongside its allies were contemplating an option to stretch current output curb by about 400,000 barrels per day to a 1.6 million barrels per day, a comment which would likely to surge crude oil futures' prices on Monday (December 2nd) morning ahead of a meet of OPEC+ nations on December 5th in Vienna, Austria. West Texas Intermediate (WTI) futures rose 91 cents, or 1.7%, to $56.08 a barrel, having risen by more than $1 earlier.

A senior adviser to President Donald Trump said a US-China trade deal was still possible before the end of the year, adding that the first phase of the agreement was being put to paper, although the talks have dragged on for weeks.

Brent for February settlement gained 22 cents, or 0.4 percent, to $61.14 a barrel on the London-based ICE Futures Europe Exchange.

"I have no deadline, no".

However, Alexander Novak, Russian Energy minister and Vagit Alekperov, chief executive officer, Lukoil are on the backs of OPEC+ seeking for an increase in production for adequate supply in Russia as winter approaches.

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Saudi Arabia is pushing the plan to deliver a positive surprise to the market before the initial public offering of state-owned Saudi Aramco, the sources said.

OPEC and other major oil producers are expected to agree to deepen output cuts to 1.5 million barrels per day (bpd) to the end of 2020 from 1.2 million now to help reduce a global supply overhang, JPMorgan said in a note on Tuesday.

Also, the bank in anticipation hopes that Brent would sell within the $60 per barrel mark in 2020 irrespective of "absent new growth or geopolitical shocks" that might arise. Growth into 2020, though, may range between 100,000 BPD and 1 million BPD.

While OPEC may cut output, U.S. producers have been only too happy to meet any market shortfalls, with production setting successive records. "China trade war continue to weigh on prices but US crude inventories are expected to have declined last week which may lend some support", Phil Flynn, analyst at Price Futures Group in Chicago, said in a note.

USA crude oil inventories likely declined by 1.8 million barrels last week, according to six analysts polled by Reuters.

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