Between 2014 and 2016, global oil companies reduced spending by a whopping 40%, efforts that included significant layoffs and withdrawals from projects seen as too expensive or unlikely to bear near-term profits. The global benchmark crude traded at a premium of US$5.76 to WTI.
Although market rebalancing is underway, OPEC and friends would have to extend their collective cuts for the whole of 2018 to achieve the market balance and erase the inventory overhang, according to Wittner.
Adding to the positive momentum, OPEC and fellow exporters also announced plans to remain open to extend their production cut agreement beyond March.
The Russian minister said ministers would also discuss monitoring exports, although he said the main focus was still on production.
Both International Energy Agency and OPEC forecasted robust demand which led to an increase in oil prices.
Five countries in the group -Libya, Nigeria, Venezuela, Iran and Iraq -may already be pumping at their maximum capacity this year, Ed Morse, the bank's global head of commodities research, said in an interview. Opec and non-Opec technical committee estimates that compliance to output cuts crossed 100 per cent in September. Prices have shot up about 15 per cent in the past three months.
Goldman Sachs argued that OPEC probably shouldn't extend its production cuts anyway because the group could cede market share to other producers (i.e. USA shale).
Oil prices languished Wednesday morning, as investors appeared to, at least momentarily, cap robust gains from earlier in the week. This hints at the success of the output-curb initiatives and rising compliance levels, raising further optimism in the industry.More news: JJ Barea says situation in Puerto Rico 'complete emergency'
The summer is traditionally a time when "refineries would produce excess inventories [of diesel and heating] in preparation for the chilly months of winter", said Adrienne Murphy, chief market analyst at AvaTrade.
Storage is on a highest level in the USA, but it is declining elsewhere.
For 2018, PublicInvest estimated the Brent oil price levels to average at US$55 per bbl. Floating storage is a more expensive way to store crude, and will be first to draw down. Oil rigs in the United States now number 744 - 326 rigs above this time previous year.
U.S. oil rig count is down by 12 so far in Q3 compared to sharp increases in the first half of this year.
The North American oil benchmark was at one point above United States $52 a barrel, its highest price since April, before sliding back somewhat.
On September 25, 2017, Kurdish people voted "yes" in their independence referendum.
"Kurdistan and northern Iraq now export 500,000-550,000 barrels per day (bpd)". So are the US and Western European powers, who have called for the vote to be cancelled because it could further destabilize the region and distract from efforts to defeat ISIS.