The Organization of the Petroleum Exporting Countries, in its monthly report, said crude oil production jumped by 90,000 barrels a day in September, complicating efforts by the group to curb the supply glut.
OPEC, however, raised its forecast for growth in global crude demand by approximately 30,000 barrels a day in 2018. The cartel is widely tipped to extend its production cuts beyond the March deadline to continue drawing down the excess build-up in stocks since 2014.
The one shocking admission was that crude prices were likely to remain in the range of $50.00-55.00 range for the foreseeable future. In the meantime, the US Department of Energy’s official inventory data is scheduled for release later. The American Petroleum Institute reported an unexpected 3.10 million barrel stockpile gain during the week ended October 6th.
WTI futures are hovering just below $51.00 after pulling back from resistance overnight.