Oil rises as OPEC, partners discuss utility supply

LONDON (Reuters) – Oil prices rose on Wednesday and recovers some of the previous session's slide, on the growing prospect of OPEC and allied producers who cut production at a meeting next month to tighten the market.

The prices rose against $ 67 earlier in the session after Reuters reported OPEC and its partners discussed a proposal to reduce production by up to 1.4 million barrels per day (bpd), a larger figure than officials have mentioned earlier.

International benchmark Brent crude increased 36 cents per barrel to $ 65.83 from 1118 GMT, after falling as low as $ 65.02. US raw materials were up 6 cents at $ 55.75.

Since mid-October, Brent's price fell by 17.5 percent on concern for excess supply and reduced demand, which marks one of the biggest downsides since the fall in prices in 2014.

"While the focus was on Iran embargo and Venezuela's production campaign over the last few months, ie the risk of insufficient supply, the market is increasingly concerned about the prospect of excess supply, said the Swiss bank Julius Baer.

The monthly report said the Paris-based International Energy Agency IEA) that the underwritten shareholding for the first half of 2019 is 2 million bpd.

The IEA left the forecast for global demand growth in 2018 and 2019, unchanged from last year at 1.3 million barrels per day (bpd) and 1, respectively, 4 million bpd, but reduced the forecast for non-OECD demand growth, the engine of expansion in world oil consumption.

Oil markets are squeezed from two sides: an increase in refunds t from OPEC, Russia and other manufacturers, and increasing concerns about a global economic downturn.

US .. Crude oil production from its seven major slate bases is expected to hit record 7.94 million barrels per day (bpd) in December, the US Department of Energy Energy Information Administration (EIA) said Tuesday.

This increase in land-based production has helped total US crude production reach a record of 11.6 million bpd, making the United States the world's largest oil producer in front of Russia and Saudi Arabia.

Most analysts expect US production to climb over 12 million bpd in the first half of 2019.

The rise in US production contributes to higher stocks.

Official storage data is on Wednesday from Energy Information Administration, where analysts expect an increase of 3 million barrels in raw materials.