Oil prices have staged a recovery, climbing above $70 a barrel after Saudi Arabia said the world's major crude producers agreed that supply needs to be significantly cut next year. So, we know that supply is going to be reduced and in the medium term we can expect higher oil prices.
USA energy firms last week added 12 oil rigs in the week to November 9 looking for new reserves, bringing the total count to 886, the highest level since March 2015, Baker Hughes energy services firm said on Friday.
"Hopefully, Saudi Arabia and OPEC will not be cutting oil production. oil prices should be much lower based on supply!"
The Saudis said they would decrease the oil supply by as much as 500,000 bpd as soon as in December - albeit other OPEC member-states and their allies, such as Russian Federation, have yet to announce their position on the proposed cuts.
"One thing that is abundantly clear, OPEC is in for a shale shocker as United States crude production increased to a record 11.6 million barrels per day and will cross the 12 million threshold next year", Innes said.
Russia's Novak said it's "hard to say" if oil markets will be over-supplied next year.
The market had anticipated that exports from OPEC member Iran would fall precipitously following the institution of US sanctions in November. "We have to wait and see how the market is unfolding".
"Many of us share this view", the minister said when asked about the need for a cut.More news: Camp Fire becomes one of the state’s most deadly and destructive fires
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Any official decision on global output cuts will be made at a key ministerial meeting for OPEC and non-OPEC producers in Vienna in early December, Falih said.
US West Texas Intermediate (WTI) crude oil futures were at $60.73 per barrel, up 54 cents, or 0.9 percent from their last settlement.
Meeting to examine how to curb a sharp slide in oil prices, the producers said they "reviewed current oil supply and demand fundamentals and noted that 2019 prospects point to higher supply growth than global requirements".
Mr Al Falih expressed concern, however, over the recent downward turn of the oil markets, which had through the summer held about $80 per barrel, only to fall to $69 on Friday, after the US Energy Information Administration reported higher US production figures and the White House granted waivers to eight of Iran's top oil buyers.
"Supply is about 100 million barrels a day and demand is about 100 million barrels a day ..."
He also attributed the sharp drop in prices to "microeconomic uncertainties" and signs of a build-up in crude inventories.
Several analysts said oil prices were likely to turn bullish again.