Crude is now down 46% from 12 months ago

“The comments go in the sense that globally we have reached a few bottom in the oil prices”.

The dollar strength declined further, which supported the rise in oil prices and so did the bets on U.S oil rigs.

“We are skeptical about this upward move in crude oil”, he said.

On Tuesday the US Energy Information Administration projected in its monthly forecast that the country’s crude output will fall through mid-2016.

Brent crude for November delivery was trading at $US52.80 a barrel, up 1.7 per cent, on London’s ICE Futures exchange at 1012 GMT.

“This could cause prices to spike upwards, starting a new cycle of strong production growth in United States shale oil and subsequent volatility”.

The gains added to a surge in prices on Thursday, with Brent crude, the global benchmark, on track for a near 12% advance this week, the biggest weekly rise since early 2009.

Speaking at the Oil and Money conference in London, Papa predicted that U.S. oil production would be much lower in January 2016 than a year earlier because the oil price was too low to encourage producers to invest. It’s being speculated that non-OPEC and OPEC countries will come to an agreement on cooperation.

“Oil prices are… recouping a few of the losses they suffered yesterday”, said Commerzbank analyst Carsten Fritsch.

In a mirror image of a few arguments against the U.S.-led war in Iraq under President George W. Bush, a few Kremlin critics are now saying Russia’s intervention in Syria is all about oil.

API-the industry trade group-reported yesterday that it expects crude oil inventory levels in the USA to fall by 1.2 million barrels during the week ended October 2. The EIA report showed refining capacity utilization fell by 2.3 percentage points from the previous week to 87.5%.

OPEC says it will cut production, and are going to see who can stand lower prices longest, since October of 2014 HeffX-LTN sees that Crude Oil is likely is headed for 20 – 22 bbl in the mid term.

“Oil prices dropping to this level and staying here for a prolonged period of time is definitely hurting major oil producers, Russian Federation included”, Ang said in a market commentary.

The chief executive of Royal Dutch Shell, Ben van Beurden, said Tuesday that he saw the beginnings of the oil market’s recovery.