Saudi Arabia, Russia Discussing Possible Oil-Production Cuts

Saudi to cut oil exports by 500,000 barrels per day in December

Oil producers see oversupply, eye cutting output

Brent has lost 25 percent since peaking at a four-year high in early October.

On Monday, oil prices dipped slightly as Washington's sanctions against Iran and waivers from the sanctions came into force on this day.

US benchmark West Texas Intermediate crude CLc1 fell 26 cents a barrel to settle at $59.93.

The UAE's Mazrouei said the goal of OPEC and non-OPEC cooperation was to strike a balance in the market. Year to date, USA production has averaged 10.7 million bpd, up from 9.3 million bpd during the same period in 2017.

U.S. energy firms last week added 12 oil rigs in the week to November 9 looking for new reserves, bringing the total count to 886, the highest level since March 2015, Baker Hughes energy services firm said on Friday.

Taiwan was flat, Seoul slid 0.3 per cent, and Sydney closed up 0.3 per cent.

Last week, the U.S. Energy Information Administration released a report that revealed U.S. oil production increased by as much as 400,000 barrels a day to a record 11.6 million barrels a day for the week ended November 2. Analysts believed the exemptions relieved concerns over volatility in global market caused by USA sanctions against Iran.

Although Opec heavy weight Saudi Arabia could not convince other members of the cartel on a collective production cut, the kingdom said on Sunday it will go ahead with a unilateral output cut next month.

Oil prices advanced Monday after Saudi Arabia announced plans to cut output in the face of global oversupplies and demanded that other producers followed suit. It would also weigh on global growth, hitting even those countries that export oil. Brent also traded lower in post-settlement activity, dropping $1.13 to $69.05 a barrel.

"We're not dependent on oil revenue".

US gasoline inventories increased by 1.9 million barrels, while distillate fuel inventories decreased by 3.5 million barrels, EIA said.

Producers implemented large cuts starting at the beginning of 2017 and managed to push up oil prices from below $30 a barrel to over $85 in October, strongly improving their revenues. Oman's Oil Minister Mohammed Al-Rumhy said "there is a consensus that there is an oversupply and we need to do something".

"Hopefully, Saudi Arabia and OPEC will not be cutting oil production". A slump in US equity markets and the dollar rising to an 18-month high also weighed on crude prices. That's 500,000 barrels a day lower than its forecast just two months ago and about 1.4 million below current production.

But the USA president - facing pressure after Republican losses in the midterm elections - is eager to tamp down threats to the economy, including higher gas prices.

The bank added that it expected USA crude production, already at a record 11.6-million barrels a day, to break through 12-million barrels a day in 2019, making the United States "energy independent". Meanwhile, WTI has traded at a discount of $8 to $10 per barrel relative to the worldwide Brent crude benchmark recently.

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