Oil price moves higher, shrugs off US oil production rise

Commodities news

The oil price is edging higher Thursday, as investors shrug off news that US oil production rose last month. Meanwhile, news that oil stocks fell, helped push prices higher.

The oil price is edging higher Thursday, as investors shrug off news that US oil production rose last month. Meanwhile, news that oil stocks fell, helped support that upward move.

By 1345 BST, the oil price was higher form the open. The price of Brent crude was up 0.47% at $61.51 per barrel. The price of US STI crude, was 0.16% higher, at $56.05 per barrel.

Stocks details closely watched

US data releases on oil stocks are being closely monitored by investors. The latest figures showed that US oil stock inventories declined by 5.6 million barrels in the week to Dec. 1. Oil stocks were reported at 448.1 million barrels, below typical inventory levels for this time of year in 2016 and 2015.

While the rise is driven by the level of stocks, it also follows a few days of falling prices, leaving room for some upward movement.

However, a separate report from the US Energy Information Administration (EIA), showed US oil production levels rose.

The EIA said US crude oil production averaged 9.71 million barrels per day during November. That’s an increase of some 25,000 per day, the monthly figures show. It’s also the highest level of crude oil production in the US since the 1970s, when the US produced over 10 million barrels per day.

OPEC cap deal withdrawal could take 6 months

In other oil news, Russia’s energy minister, Alexander Novak has said that a decision to withdraw from the OPEC oil production cap agreement in 2018, could take up to 6 months to negotiate.

"This is a process to be discussed. It can take three months or half-year. A specific moment of time to be considered, depending on the future demand," the minister said, according to a report.

Novak added that discussing that detail didn’t reflect a desire to withdraw from the agreement.

As of 13:48 GMT, Thursday, 07 December, Oil share price is $49.59.