Opec to discuss extending oil cuts by more than 3 months

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Opec in the report also said its oil output in August came in below the demand forecast as output fell by 79,000bpd from July to 32.76 million bpd.

"We believe that Irma will have a negative impact on oil demand but not on oil production or processing", Goldman Sachs analysts said in a note. This year's hurricane season still has the potential to be "particularly destructive", with consequences for the oil market, it said.

"If the Harvey impact was potentially and possibly short-term bullish for oil prices the same can not be said about Irma", PVM analyst Tamas Varga stated. In August, the IEA has anticipated annual growth would hit 1.5 mb/d, again an increase on July's 1.4 mb/d forecast.

US crude settled up $1.07, or 2.2 percent, to $49.30 per barrel and Brent crude LCOc1 was up 89 cents to $55.16 a barrel.

Brent crude rose 53 cents or 0.9 percent to $54.37 per barrel by 11:56 a.m.(1556 GMT). Some OPEC and non-OPEC ministers have been in discussions in recent days over their production cut strategy, with one of the options on the table being to extend the output restraint agreement beyond its current expiration at the end of March 2018.

On Tuesday the Organization of the Petroleum Exporting Countries in its monthly report said its production fell for the first time since April.

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But still Corzo said undocumented immigrants who are apart of DACA face negative misconceptions. Trump has called the ending of the program an "amnesty-first approach".

Today's U.S. Energy Information Administration's weekly inventories report is expected to show a 4.1 million barrel build. According to the organisation, the supply was hampered by Hurricane Harvey in the USA, which caused refineries to shut.

Opec and other producers including Russia, Mexico and Kazakhstan pledged to reduce output by about 1.8 million barrels a day to eliminate a global surplus that was weighing on prices.

Saudi Arabia has energy-reliant economy continues to struggle since oil prices tanked in 2014.

Markets were upended in late August when Hurricane Harvey struck the southern coast of Texas, sidelined a good portion of total US refining capacity and threatened production centers in the Gulf of Mexico and inland shale basins.

Analysts surveyed Monday by S&P Global Platts expect United States crude stocks rose 10.1 million barrels. Total motor gasoline supplied (the agency's proxy for demand) averaged over 9.9 million barrels a day for the past four weeks, up by about 400,000 barrels a day compared with the prior week.

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