However, a recent Reuters poll suggests OPEC oil output rose some 50,000 per day during September. Since oil prices crashed in 2014, West Texas Intermediate has been unable to hold above $50 for more than a few weeks or months.
Brent prices have eased back from the two-year high above $US59 it saw Monday after the referendum. "This market was really over-bought". Refinery utilization rates fell by 0.5 percentage points.
Still, even the most bullish traders believe the Organization of Petroleum Exporting Countries and its allies, which include Russian Federation and Mexico, need to extend output cuts that are set to expire at the end of March 2018 to avoid a build-up in inventories.
"Due to this combination of production cuts and growing demand, oil could head up to its 2017 high, just above $55, or even $60 per barrel by year-end".
Worldwide credit rating agency Fitch announced yesterday that crude oil prices in global market will remain under $60 per barrel.
Nigeria and Libya were also exempted from the curbs. Supply from the 11 members with production targets under the original accord rose by 40,000 bpd. Natural gas production was at 53.69 billion cubic metres (bcm) last month, or 1.79 bcm a day, versus 54.2 bcm in August.
CNN says Russian-backed Facebook ads targeted MI
It also said that 44 percent of the ads were seen before the November 2016 election and 56 percent were seen afterward. If you recall from election night, the States of MI and Wisconsin were two of the closest races in the entire nation.
However, in a Monday letter the National Oil Company declared force majeure on deliveries from Sharara, the country's largest oilfield.
IBD'S TAKE: Earnings season is about to kick off.
The potential adverse fallout from the independence referendum in the oil-rich Kurdish region of Iraq hit sentiment last week, but couldn't stop a solid end to the week, months and quarter. Citigroup's forecasts call for U.S.
Data revealed Wednesday morning by the U.S. Energy Information Administration showed U.S. commercial crude inventories fell by six million barrels in the week to september 29, compared with analysts' expectations for a decrease of 756,000 barrels.
As with the price of gold, oil is valued in dollars.
"What the market is always concerned about is as the price goes higher, the world produces more, and prices are capped", said Richard Fullarton, founder of London-based hedge fund Matilda Capital Management Ltd. "Yet it really is too early to be speculating on that".