Oil futures were down after a survey suggested an increase in OPEC output

Oil prices leg up

The price of oil fell on early Monday as it catches its breath following a 20 percent rise in the third half this year. This happened after club OPEC released a report that suggested an output rise last month.

According to a Reuters survey, the production of oil from the Organization of Petroleum Exporting Countries (OPEC) members rose in September by more than 50,000 barrels per day (bpd). Exports from Iraq were also higher and Libyan output increased, despite being exempted from the OPEC-led agreement to reduce production to prop up prices.

Looking at the price of oil, the international benchmark for oil futures Brent crude lost as much as 6 cents to finish at $56.73 per barrel for its December delivery. However, Brent finished the session last Friday adding 13 cents at $57.54 per barrel for its November delivery. It touched its highest level in five quarters as it jumped as high as 20 percent. This happened after the contract posted its fifth consecutive weekly gain on the previous week, which is considered its lengthiest bull run since June last year.

The following gains have been underpinned by expectations of a heightened demand from refiners that started again following a shutdown due to Hurricane Harvey battered the heart of U.S. oil industry.

Industrial service company Baker Hughes said last Friday that oil producers from the Middle East added rigs subsequently when it started a 14-month recovery in oil drilling last August. Adding that oil drillers gained six oil rigs in the week until September 29.





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