Oil prices rise in Asia with OPEC meeting in focus

“Despite the recent fall in oil prices, Russian production continued to accelerate as oil producers remained profitable even in the lower oil price environment, helped by the effect of a weak rouble on costs and lower taxes, which decline in a lower oil price environment”, Bank of America Merrill Lynch said in recent research.

Asali, who is Iranian oil ministry’s secretary for OPEC affairs and relations with energy organizations, said that the Iranian minister has informed the organization that Iran will revive its pre-sanction output and the OPEC members should open space for the Islamic Republic’s output.

But it won’t be enough to stop the glut from increasing as non-OPEC Russia and OPEC member Iraq have steeply increased supplies and Iran is due to ramp up deliveries if as expected Western sanctions on the country are lifted next year.

Oil prices have been in retreat from levels above $100 a barrel reached in mid-2014.

In addition, the expected rise in United States interest rates later this month may boost the dollar and make dollar-priced oil more expensive, further denting demand and prices.

OPEC is scheduled to meet in Vienna on December 4.

WTI crude fell yesterday after a survey showed rising output from Saudi Arabia.

Iraq’s oil exports rose in November to a decades-high average of 3.37 million bpd.

“Crude prices are likely to stay sideways ahead of the OPEC meeting, where Iran is expected to announce plans to expand output”.

OPEC oil ministers have repeatedly said they would only cut production in tandem with non-OPEC.

Russian oil production hit a new post-Soviet high in October.

“Fast forward a year from now and, if our expectations are accurate, stock draws will have begun”.