08 November, 2018
Crude Oil traded stable to higher on Thursday morning during the Asian session at 61.73 as record U.S. crude output heightened concerns of a return of global oversupply, stoking talk from within OPEC that production curbs may become necessary once again to prevent a glut. A group of producers around the Middle East-dominated Organization of the Petroleum Exporting Countries as well as Russia decided last June to relax output curbs in place since 2017, after pressure from U.S. President Donald Trump to reduce oil prices and make up for supply losses from Iran. But with Iran sanctions now in place and oil still in ample availability, OPEC-led production cuts next year cannot be ruled out, two OPEC sources said on Wednesday. It is thought that OPEC and Russia would still like to see Crude prices around $70 dollars per barrel. However, rising global output has seen a relentless increase in U.S. crude production, which hit a record 11.6 million barrels per day in the week ending Nov. 2, according to Energy Information Administration data released on Wednesday.