Published: Tue, October 10, 2017
Finance | By Loren Pratt

Oil prices stable as OPEC says market is rebalancing

It received its first oil cargo from the USA this month. Through this process, a privately held company transforms into a public company. The price for West Texas Intermediate, the US benchmark for the price of oil, was inching slightly higher, gaining 0.34 percent from Friday to $49.46 per barrel.

He also said the agreement would be extended unless the market became balanced. Earlier reports quoted Saudi Arabia's Energy Minister Khalid al-Falih as saying he hoped the cartel and its partners could reach a consensus on the future of the deal before that meeting. However, Saudi Aramco CEO Amin Nasser told reporters on October 5 that a decision on the volume of the IPO will be made depending on market conditions.

According to a Petroleum Ministry release here, the issue came up in the talks between Pradhan and the Organization of the Petroleum Exporting Countries (OPEC) Secretary General Sanusi Mohammad Barkindo, who is in India to attend the first CERAWEEK India Energy Forum.

Barkindo said consultations were underway for the extension of the OPEC-led pact beyond March 2018 and that more oil producing nations may join the supply pact, possibly at the next meeting of OPEC in Vienna on November 30.

"We had honest and good conversation".

Russian President Vladimir Putin last week said Moscow is open to extending the cut deal to the end of next year.

Traders said that Nate's impact had been lower than that of hurricanes hitting the region in the past month.

USA bank JP Morgan said in a note to clients that previous "concerns that OPEC compliance would fade into the fourth quarter now appear unfounded" and that "stronger than assumed economic growth offers the potential for tight market conditions to continue if OPEC extends the current deal for another nine months".

Natural gas futures rose 0.76% to $2.917 per million British thermal units.

Short-term price support was also coming from the United States, where some 85 percent of U.S. Gulf of Mexico oil production, or 1.49 million barrels a day, is offline in the aftermath of Hurricane Nate, the U.S. Department of the Interior's Bureau of Safety and Environmental Enforcement (BSEE) said late on Monday.

Pradhan highlighted that in the now oversupplied crude market, it is important for producers to understand the perspective of consuming countries and the changes that have taken place in these demand centres, and suggested that the OPEC at its ministerial meetings give wider consideration to Indias requests.

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