Oil Heads for Second Monthly Gain as OPEC Strategy Pays Off

Futures were little changed in New York and are up 4.8 percent this month, after rallying 9.4 percent in September. U.S. crude inventories probably declined for a fifth time in six weeks, according to a Bloomberg survey before government data due Wednesday. Saudi Arabian Crown Prince Mohammed bin Salman said last week that he backed prolonging supply curbs, following a similar endorsement by Russian President Vladimir Putin earlier this month.

Global benchmark Brent crude this month topped $60 a barrel for the first time since 2015 on hopes the Organization of Petroleum Exporting Countries and partners including Russia will prolong their curbs aimed at eliminating a glut. Prices were also boosted by fighting between Iraqi government troops and Kurdish forces in the oil-rich Kirkuk region. Still, the potential for continued supplies from U.S. shale fields is a concern.

“The oil market is tightening and the supply surplus is shrinking,” said Norbert Ruecker, head of commodity research at Julius Baer Group Ltd. in Zurich. “Sentiment is very bullish since the market seems to expect that the supply surplus will erode further heading into 2018.”
more detail at:  https://www.bloomberg.com/news/articles/2017-10-31/oil-holds-gains-near-8-month-high-as-u-s-supplies-seen-falling

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Oil Rises Toward $63 as OPEC Cuts Weighed Against U.S. Supplies

Futures in New York rose as much as 1.2 percent after dropping on Monday. While U.S. inventories are forecast to have added 3.4 million barrels last week, that would mark slower growth than the prior week. OPEC and its partners, which are cutting output to ease the global glut, still expect markets to balance by about the third quarter, according to people familiar with the matter. U.S. crude inventories are at their highest since December and probably grew again last week, according to a Bloomberg survey before government data due Wednesday. While supplies are set for a fourth weekly advance, the expected increase is smaller than the 5 million-barrel gain a week earlier. Click Read More below for additional information.

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