OPEC-led group agreed to rollback output by 1.2 million bpd during first six months of 2019 against the expectations for cuts to fall between 1 million and 1.4 million bpd.
OPEC will curb output by 0.8 million bpd from October levels, while non-OPEC allies contribute an additional 0.4 million bpd of cuts. A further breakdown shows Saudi Arabia will reduce its production down to about 10.7 million bpd in December and to 10.2 million bpd in January. Russia is going to cut about 228,000 to 230,000 bpd.
EIA (Energy Information Administration) inventory data showed that inventories fell by 7.3 million barrels for the week against the expectations for a decline of 2.39 million barrels. This was first reported draw in 11 weeks.
EIA reported a rise in gasoline stockpiles by 1.7 million barrels against the expectations for an increase of 3,57,000 barrels while distillate stockpiles climbed 3.8 million barrels against an expectation of 1.25 million barrel build in inventories. Offering a hint on US production activity, Baker Hughes reported that the number of active domestic rigs drilling for oil fell by 10 to 877.
For this month, the major factor that added pressure to bearish momentum was the data from the US that showed it became a net oil exporter last week for the first time in 75 years.
US crude oil exports surged to record high of 3.203 million bpd last week, as oil production also soared to record highs. Data from EIA showed that US crude oil production was at a record 11.7 million bpd throughout November that was more than what each of Russia and Saudi Arabia pumped in November, although the Saudis also reached record highs in their production last month.
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