Oil futures rose on Aug. 30 supported by production suspensions in the U.S. Gulf of Mexico (GoM) due to an expected tropical storm and speculation that the OPEC meeting in Algeria next month will act to prop up prices.
Brent crude futures were trading at $49.53 per barrel (bbl) at 6:42 a.m. CT (11:42 GMT), up 27 cents from the previous close. U.S. West Texas Intermediate (WTI) crude was up 36 cents at $47.34/bbl.
Oil and gas operators in the U.S. GoM have shut output equal to 168,334 bbl/d of oil and 190 million cubic feet per day of natural gas as a precaution against a tropical storm, the U.S. Bureau of Safety and Environmental Enforcement said on Aug. 29.
RELATED: Operators Shut-In 11% Of US GoM Oil Production As Storm Nears
Oil prices have also been taking direction from speculation that a meeting next month in Algeria of major producers, including members of OPEC, could yield a production deal to support prices.
"Prices are still finding support from the expectations of an agreement on production caps being reached at the late-September meeting," Commerzbank said in a note.
Saudi Arabian Energy Minister Khalid Al-Falih told Reuters last week he does not believe an intervention in oil markets is necessary since the "market is moving in the right direction".
Iraq—which exported more crude this month from its southern ports than in July—will continue ramping up output, its oil minister said on Aug. 27.
A Nigerian militant group has said it has ended attacks on the nation's oil and gas industry that have reduced the OPEC member's output by 700,000 bbl/d to 1.56 MMbbl/d.
But the prospect of a recovery in oil production from Libya happening any time soon was tempered after the head of the country's National Oil Corp. said budgetary delays from the new government were undermining oil production.
The huge global oil oversupply that has weighed on prices for the past two years may not clear until the second half of 2017, Royal Dutch Shell's (NYSE: RDS.A) chief energy adviser Wim Thomas told Reuters.
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