Oil holds gains as producers say market rebalancing

Oil down

Fuel prices to hit seven-month high this week

November Brent LCOX7, +1.28%, the global benchmark, climbed 51 cents, or 0.9%, at $57.37 a barrel in London trading, having closed out Friday at its highest weekly settlement of the past eight months, up $1.24 a barrel on the week.

U.S. West Texas Intermediate (WTI) crude settled at $50.66 a barrel, up 11 cents or 0.2 percent, within a few cents of its May peak.

Goldman Sachs said that talks over extending cuts are "noteworthy but premature", adding "we believe it is unlikely that committee will recommend extension of cuts this week". The euro slipped after Germany's election showed surging support for a far-right party that left Chancellor Angela Merkel scrambling to form a governing coalition.

Iran expects to maintain overall crude and condensate exports at around 2.6 million bpd for the rest of 2017, a senior official in the nation's state oil company said, while the UAE's energy minister said its compliance to supply cuts was 100 per cent.

Other ministers said a decision on extending cuts could be taken in November when OPEC holds its next formal meeting.

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Meanwhile, the period drama, which was scheduled to release on November 17, has been postponed to December 1. The movie's shoot went through a lot of difficulties.

Nigeria is pumping below its agreed output cap, its oil minister said.

Rising U.S. output has somewhat offset OPEC-led production cuts.

Markets were also eyeing developments in North Korea.

Still, CHS Hedging's Headrick said "the USA oil producer has proven to be very resilient in the face of lower prices".

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. 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.

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