Given the only modest impact Harvey had on oil production, the combined demand loss generated by these two hurricanes will be a bearish shock for global oil balances in September of c.600 kb/d.
Saudi Arabia's Energy Minister Khalid al-Falih met his Venezuelan and Kazakh counterparts at the weekend to discuss an extension of a deal to cut production by about 1.8 million bpd until March 2018 by at least three months, the Saudi energy ministry said.
The longer-term focus, however, was on a possible extension to the 15-month production pact between members of the Organization of the Petroleum Exporting Countries and non-OPEC producers including Russian Federation. Brent crude oil futures for November delivery LCOc1 were up 5 cents at $53.73 a barrel while benchmark US West Texas Intermediate crude CLc1 advanced by 32 cents to $47.80. Still, Hurricane Irma knocked out power to almost 4 million homes and businesses in Florida on Sunday as it drifted up the west coast of the state toward southern Georgia on Monday as a tropical storm.
Both U.S. product futures ended lower - gasoline dropped 0.7 percent and heating oil fell 1.4 percent. It estimates that the global crude oil rig count fell by eight to 715 in August 2017-compared to the previous month.
Libyan production-which has undercut OPEC's efforts-fell significantly by 112,300 barrels in August, to 890,000 barrels a day, a result of pipeline closures and disruptions at its oil fields, the report showed.
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Oil prices have been experiencing some downward trend during the last two weeks as commerce and energy demand in the USA were hit by hurricanes Harvey and Irma, two of the most powerful storms in a century.
On average, analysts polled by S&P Global Platts expect the EIA to report a climb of 10.1 million barrels in crude supplies, along with declines in gasoline stocks of 4 million and distillate stocks of 300,000 barrels.
Official data from the Energy Information Administration will be released Wednesday.
"The oil market reacted to the Saudi talks", said Tomomichi Akuta, senior economist at Mitsubishi UFJ Research and Consulting told Reuters.
Moreover, OPEC may also place "stricter requirements" on Iran's oil production, said Commerzbank analysts in a recent report.