Oil prices stood little changes on Monday, holding most of their gains from the previous trading session to hold near its highest levels in months, as major producers meeting in Vienna said the market was well on its way towards rebalancing.
He said Brent futures got an additional boost in late trade when Nigeria's oil minister said in Vienna that his country, which OPEC had exempted from the output cuts, was actually pumping less crude than its agreed cap.
The meeting noted that overall compliance by OPEC and Non OPEC participating Countries to the Agreement on crude oil production cut for the month of August was 116 per cent, the highest since the agreement came into effect on January 2017.
Russia's energy minister said no decision was expected before January, although other ministers suggested such a decision could be taken before the end of this year. United States crude for November delivery was down 4 cents at United States dollars 50.62, having risen 0.2% on Friday. Rising demand has also helped balance the market.
After a recent rise in global crude oil prices due to reduced supply, CPC's average price for crude oil was calculated at US$55.02 per barrel this week, up from US$53.7 per barrel last week, according to its website.
Russian Federation joined in the call to say the oil market is rebalancing. U.S. crude oil stockpiles jumped last week as imports and production increased, the U.S. Energy Information Administration said, as operations resumed from the impact of Hurricane Harvey which hit the Gulf Coast on August 25.
The spread "could stretch a bit further" but USA refinery restarts and growing US exports should eventually lift WTI prices and narrow the spread, Ritterbusch said.