Oil prices edged on Wednesday, based on record Indian crude imports and approaching talks between OPEC producers along with other oil exporters on curbing output to finish a glut within the global market.
Brent crude futures (LCOc1) were up 21 cents, or .4 %, at $52.62 a barrel at 0639 GMT.
U.S. West Texas Intermediate (WTI) crude futures (CLc1) were up 15 cents, or .3 %, using their last settlement at $50.94 per barrel.
Traders stated that prices were boosted by record Indian oil imports.
India’s oil imports rose 4.4 % in September in the previous month to some record high 4.47 million barrels each day (bpd) because the country expanded its refining ability to meet growing fuel demand within an expanding economy, shipping data demonstrated.
Oil imports through the world’s third greatest oil consumer surged 17.7 % from last year, based on ship tracking data along with a report published by Thomson Reuters Oil Research and Forecasts.
The possibilities of countries from oil group OPEC and non-OPEC people like Russia coordinating a production cut to control global oversupply, also supported prices.
However, analysts cautioned that the deal may still fall through especially as Russia’s participation continued to be uncertain.
Much depends around the timing associated with a production cut, stated Alan Gelder, v . p . for refining, chemicals and oil markets at energy consultancy Wood Mackenzie, that could deter participation.
“Timing is essential for Russia to supply non-OPEC support to re-balancing the oil market, as September was, momentarily, at unparalleled production levels. The development reference (month) could require Rosneft to curb its current drilling program, that is resistant to the interests of their private shareholders,” he stated.
Oil has rallied greater than 13 % in under two days because the Organization from the Oil Conveying Countries suggested its first production curbs in eight years. But prices stay at about 50 % of mid-2014 highs above $100 a barrel as questions remain over once the market will go back to balance.
Goldman Sachs (New york stock exchange:GS) added its doubts on Tuesday, saying inside a research observe that the planned oil output cut by OPEC along with other exporters has turned into a “greater possibility,” but cautioned a production cut likely will not be deep enough to re-balance markets in 2017, which oil prices may fall into the low $40s per barrel.