Nigeria, Iraq agree to cut oil output

OPEC members Iraq Nigeria agree to cut oil output

Nigeria, Iraq agree to cut oil output

Boosting the market's good mood, the US Energy Information Administration said on Wednesday that US crude oil stockpiles fell last week to the lowest in almost a year, as refineries raised output and imports fell.

Brent crude was down 18 cents, or 0.3 percent, at $60.20 a barrel by 0442 GMT, while US West Texas Intermediate (WTI) was off by 14 cents, or 0.3 percent, at $54.95.

Brent has traded in a range of almost $5 this week and is heading for its first weekly loss in five.

Saudi Arabia's new energy minister, Prince Abdulaziz bin Salman, said deeper cuts would not be discussed before a meeting of the Organisation of the Petroleum Exporting Countries planned for December 5 and 6.

Nigeria is to reduce supply by 57,000 barrels per day (bpd) while Iraq, OPEC's second-largest oil producer, pledged to reduce output by 175,000 bpd by October.

"We reiterate our firm commitment to full compliance", Iraqi Oil Minister Thamer al-Ghadban told a press conference.

A statement from OPEC and its allies, a grouping known as OPEC+, said oil stocks in industrial countries remained above the five-year average.

At 416.1 million barrels, United States crude oil inventories were at their lowest since October 2018, and about 2 per cent below the five-year average for this time of year, the EIA said.

Both crude benchmarks fell sharply the previous day following a report that U.S. President Donald Trump had weighed easing sanctions on Iran, a move that would potentially boost crude supply. "The drop is due to a combination of reports of Trump and Iran, the European Central Bank easing, which pushed up the dollar which hurt oil", said David Madden, an analyst at CMC Markets.

Also feeding the bearish sentiment, the International Energy Agency, which advises industrial economies on energy policy, said surging USA output would make balancing the market "daunting" in 2020.

Oil futures fell on Friday as concerns about global growth and slowing demand lingered despite hints of progress on US-China trade talks, setting up prices for weekly losses after days of swinging back and forth.

Thanks to Cactus II and EPIC, outbound shipments of crude oil from Corpus Christi surged to a record in the first week of September, RBN Energy said on Monday, noting that the data may be "suggesting that the expected surge in exports of Permian oil is finally occurring".

The oil market has been hit by fears that global demand will be dented by the US-China trade war and the slowdown in world economy.

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