Oil prices rise as Opec cuts production

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Futures added 0.5% in NY after falling 3.3% on September 8.

It recommended that the USA strengthens its energy security to address events, such as hurricanes, by potentially adding oil products to government-held inventories.

"Global economic growth momentum has gained traction lately and has become more balanced, with all major economies now showing positive growth this year, a trend that is forecast to continue into 2018", OPEC said in its report.

US crude production rebounded to an average of 9.4 million barrels per day last week from 8.8 million bpd a week earlier, entirely the result of increases in the lower 48 states.

"Irma will have a negative impact on oil demand but not on oil production or processing".

West Texas Intermediate for October delivery was at $48.69 a barrel on the New York Mercantile Exchange, up 46 cents, at 11:54am in London.

"OECD product stocks were only 35 million barrels above the five-year average at end-July", the IEA said.

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The VanEck Vectors Oil Services ETF (NYSEMKT: OIH) traded up about 1.7%, at $22.27 in a 52-week range of $21.70 to $36.35.

The full effects of the storm pushed gasoline pump prices up by 28 cents per gallon to a national average of $2.68 a gallon on September 4.

A further extension for at least three more months beyond March is now being discussed before OPEC meets again in November. "It's not going to be that picture necessarily", Atkinson said.

According to a report released by the agency yesterday, strong demand in the second-quarter has helped the oil markets which have been struggling to rebalance, as oversupply had dragged the prices downwards. Nevertheless, Libya reversed this trend as its crude oil production slipped down to an 890,000 barrels a day by an estimated 112,000 barrels.

An estimated 2.6-2.7 million b/d (14-15% of total US) refining capacity remained shuttered in Texas as of Monday local time, according to our estimates based on reports from the companies, the Department of Energy, and the media.

Oil prices rose on Tuesday after OPEC forecast higher demand in 2018 and Russian Federation and Venezuela confirmed their commitment to a production-cutting deal in an effort to reduce the global crude glut.

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