Oil Prices to Rise to $70 Per Barrel After Oil Production Cut

US investment banks see low oil prices despite OPEC cut

Adding to the negative impact, the United States posted on Thursday a dramatic rise in exports of crude oil and products to more than 9.0 million barrels per day during the week ending November 30. But amid mounting global uncertainty on everything from trade and monetary policy to politics, that forecast is far from consensus.

Saudi Minister of Energy, Industry and Mineral Resources Khalid al-Falih on Monday discussed oil market conditions with U.S. Secretary of Energy Rick Perry during Perry's visit to Dhahran, Saudi Arabia. "China trade tensions continue to weigh on the market, negating last Friday's OPEC plus production cut news", Nicholas Cawley, analyst at DailyFX, told UPI. The benchmark NY crude was $2.11, or 4.1 percent, higher at $53.60 a barrel.

According to the U.S. Energy Information Administration (EIA), the export level exceeded the import level of crude oil, making the world's top oil producer a net exporter for the first time in 75 years.

The Saudi minister noted before the meeting that the oil pumpers are looking for a sufficient cut to balance the market.

They will decide on whether to extend that agreement after six months, al-Mazrouei, OPEC's current president, said.

The next OPEC and non-OPEC ministerial meeting will be held in Vienna, Austria, in April 2019 to review the impact of the deal on the global oil market.

Plane carrying George H.W. Bush's casket leaves Houston
Bush and Neil Bush, along with members of their immediate families. "Thank you for your lifetime of service Mr. An invitation-only funeral service is set for Wednesday at Washington National Cathedral.

The OPEC-led group of oil producers last Friday announced a supply cut of 1.2 million barrels per day (bpd) in crude oil supply from January, measured against October 2018 output levels.

Brent could decline to around $40 a barrel if the OPEC cut deal does not work, Citigroup warned, adding the benchmark could climb to $70 to $80 per barrel if OPEC+ takes more oil off the market or if supply disruptions occur.

It's likely the combination of the two that prompted selling - not least concerns over growth stemming from the U.S.

US based Capital Economics, meanwhile, sees an average of $63 a barrel over the course of 2019. US West Texas Intermediate (WTI) crude futures were at $51.16 per barrel, up 16 cents, or 0.3 per cent. Futures settled 2.8 percent lower at $59.97 on Monday.

"OPEC production curbs will stabilise the market", ANZ bank said on Wednesday. Russian Federation also announced Tuesday that it will only implement a small portion of its total promised output cuts in January.

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