OPEC Chief Urges US Shale To Curb Oil Output

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OPEC's focus is on to jointly implement the supply adjustments in order to continue to accelerate the destocking to restore stability, Mohammed Barkindo said adding, if the balance is restored between demand and supply of crude oil, it would be in the best interest of the global economy.

"With the market moving into the winter season, distillate fuel supplies are notably tight, representing a change from the excess supplies seen in the last two years", Opec said in the report.

U.S. West Texas Intermediate (WTI) crude futures rose 38 cents, or 0.8 percent, to $51.30 a barrel. Saudi Arabia and Russian Federation, he said, are leading the initiative to bring in more producers.

Saudi Arabia and Russian Federation helped secure a deal between the Organization of the Petroleum Exporting Countries and 10 rival producers to cut output by about 1.8 million barrels per day (bpd) until the end of March 2018 in an effort to reduce a glut.

Rising supply from the US and from other producers outside of the deal, as well as recovery of production in exempt OPEC members Libya and Nigeria, have been offsetting much of the OPEC/non-OPEC production cuts.

Opec said it pumped 32.75 million bpd in September, up about 89,000 bpd from August.

Barclays had raised its price outlook for the fourth quarter of 2018 and the first quarter of 2017. Last year, the bloc and some others producers made a decision to reduce production by around 1.2 million barrels per day from January 1, 2017. "At the moment, there is no talk of an extraordinary meeting", he told media. For 2018, oil demand is expected to rise by 420,000 bpd vs 400,000 bpd previously.

Speaking at the Reuters Global Commodities Summit, Vitol CEO Ian Taylor said USA output would climb another 500,000 to 600,000 bpd next year before flattening.

Haworth said the market and OPEC are "hoping U.S. producers slow down production and make further progress on inventory cuts".

USA crude inventories probably fell for a third straight week, while refined product stockpiles also likely declined, a Reuters poll showed.

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