By Srinivas Chowdary Sunkara // petrobazaar // 23rd Oct, 2018.
Brent crude futures closed up at $79.83, 17 cents or 0.21 pct up while U.S crude futures little changed to $69.17 a barrel, 5 cents up or 0.07 % rise yesterday. Both the crude markers pared earlier losses before ended up last night. Rise in rig numbers capped the gains in Monday's session.
Turning to supply side, Riyadh pledged to boost production to 11 Mbpd and claimed that the country had a capacity to boost up to 12 Mbpd. Another news hit the market that Iraq – the world's fourth biggest oil producer is producing 4.78 Mbpd and country's oil minister further said that his country will produce 5Mbpd in the next year and 7.5Mbpd in 2020. Libya restored oil exports after unrest earlier last week. However, Market cited IEA as saying that the missing Iranian oil barrels could be hard for other producers to offset.
Coming to demand side story, The outlook for oil demand seems to be deteriorating as the ongoing trade disputes are expected to erode the demand certainly in 2019 which is raising the possibility of market returning to surplus. Asian markets opened in red today. Good day.
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