WASHINGTON: Global crude prices pushed higher Monday ahead of OPEC’s December meeting on the oil market, as Saudi Arabia suggested no change to the cartel’s output ceiling.
Firm economic data from China, Europe and the United States helped strengthen prices, analysts said
New York’s main contract, West Texas Intermediate (WTI) for delivery in January, gained $1.10 to $93.82 a barrel.
Brent North Sea crude for January added $1.76 to $111.45 in Lond trade..
“Prices have been supported by better than expected Chinese manufacturing PMI figures,” said Kash Kamal, research analyst at London-based brokerage Sucden Financial.
Official data Sunday showed China’s manufacturing growth in November maintained its strong pace from the previous month to stay at a 19-month high.
Meanwhile purchasing manager indices for the manufacturing sectors in Europe and the United States also rose, supporting a slightly more bullish outlook for the market.
Ahead of Wednesday’s meeting of the Organization of Petroleum Exporting Countries, Saudi Arabia, the world’s leading exports, said it is satisfied with current crude prices as well as global supply and demand levels
“The market is in the best position it can be,” Saudi Oil Minister Ali al-Naimi told reporters in Vienna.
“Demand is great, economic growth is improving,” he said.
“Supply and demand are in equilibrium, inventories are in a good position,” he added. “We are at the right price right now.”
OPEC is seen sitting tight on its output ceiling of 30 million barrels per day.
The changing situations of two OPEC members continues to shape the market. Libyan output has been slashed amid rising unrest. Meanwhile, Iran could sharply increase exports next year if it reaches a full agreement with Western powers on curbing its nuclear program that would allow the lifting of sanctions.
Source: AFP
