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Oil Halts Advance After Four-Day Gain as OPEC Prepares to Meet

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The extension of the oil production cut agreement between OPEC and non-OPEC nations is aimed at aligning the dynamics of energy prices, Kremlin spokesman Dmitry Peskov said Tuesday.

"It will complicate the OPEC efforts to stabilize the market", said Anas Alhajji, an independent oil analyst and economist in the Reuters Global Markets Forum following the announcement.

The budget, which will be delivered to Congress on Tuesday, is meant as a proposal and may not take effect in its current form.

Brent crude traded up 9 cents at $53.96 per barrel by 11:49 a.m.(1549 GMT).

80,000 barrels per day isn't much in the grand scheme of things (the petrostate cut plan reduced supply by roughly 1.2 million barrels per day), but it could get worse in the coming months as Iraq's capacity increases.

Prices have been lifted by expectations that a pledge by the Organisation of the Petroleum Exporting Countries (Opec) and other producers, including Russian Federation, to cut supplies by 1.8 million barrels per day (bpd) would be extended to March 2018, instead of covering just the first half of this year.

usa light crude was down 33 cents at US$50.80.

US West Texas Intermediate futures were at $50.71, down 42 cents, or 0.8 percent.

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The decision pushed prices back above $50 per barrel, giving a fiscal boost to major oil producers.

Opec, led by Saudi Arabia and other participating producers, will meet tomorrow and are expected to extend the period of the cut from just the first half of this year to all of 2017 and the first quarter of 2018. Not all participants were fully on board with the proposal, with Iraq supporting another six months of cuts, according to Falah Al-Amri, the head of the country's State Oil Marketing Organization.

SPR is a USA government-owned complex and is the world's largest supply of emergency crude oil.

Saudi Arabia and non-OPEC Russia have been pushing to extend the cuts by nine months until March 2018.

PVM said if USA imports in coming years matched those of 2016, the country would need to keep 489 million barrels of oil in the SPR, some 140-150 million barrels above the proposed new level.

In late November, OPEC member states signed an agreement to decrease oil production by 1.2 million barrels per day to 32.5 million barrels per day for the whole cartel. Nigerian production is also recovering from the attacks as Lagos' officials meet with residents of the Niger Delta to discuss infrastructure improvement and revenue sharing opportunities.

Speaking on Bloomberg television, Dicker credited Saudi Arabia for being "totally transparent" in their business dealings and OPEC members "for having all the discipline" in following through with their promised cutbacks; he also condemned the US for "maniacally" undercutting the success of the cutbacks with steadily rising production.

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