Oil Prices on the Rise
CBJ — The price of oil continues to ascend due to strong demand in Asia and confirmed supply cuts by Abu Dhabi, Kuwait and Qatar as part of production curbs organized by OPEC and other exporters.
International Brent crude and U.S. West Texas Intermediate (WTI) flirted with negative territory in early European trading. Traders said there was significant profit-taking after oil shot to mid-2015 highs earlier this week following a deal reached by the Middle East-led Organization of the Petroleum Exporting Countries and other exporters led by Russia to cut output by almost 1.8 million barrels per day (bpd).
In a sign that producers are acting on their plans to cut output, Abu Dhabi National Oil Co told customers it would reduce Murban and Upper Zakum crude supplies by 5% and Das crude exports by 3%.
Kuwait Petroleum Corp notified customers of a cut in contractual crude supplies for January, as did Qatar Petroleum.
Meanwhile, China’s November crude output fell 9% from a year earlier to 3.915 million bpd, data showed on Tuesday. Production recovered from October’s 3.78 million bpd, however, which was the lowest in more than seven years. China’s refinery throughput hit a record in November of 11.14 million bpd, up 3.4% cent year-on-year.
In India, fuel demand rose about 12% year-on-year in November.