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Oil extends gains as Opec says all options open on re-balancing
[HONG KONG] Oil extended gains as Opec and its allies reiterated that all options are open to rebalance the market.
December futures increased as much as 0.8 per cent in New York. Opec and its partners including Russia achieved a record level of compliance to output cuts during September, according to a statement Saturday from the committee responsible for monitoring the agreement.
In the US, drillers reduced the rig count a third week to the lowest since June, according to Baker Hughes.
Oil is holding above US$50 a barrel on speculation the Organization of Petroleum Exporting Countries will decide to extend supply curbs past the end of March when it meets in Vienna on Nov 30.
Geopolitical tensions in northern Iraq have also helped to support prices the past week, with Iraqi forces regaining control of Zummar town where Batma and Ain Zala fields are located.
West Texas Intermediate for December delivery advanced as much as 40 cents to US$52.24 a barrel on the New York Mercantile Exchange, and was at US$52.10 at 8.01am in Hong Kong. Total volume traded was about 58 per cent below the 100-day average. The November contract expired Friday after gaining 0.4 percent to US$51.47.
Brent for December settlement added as much as 30 US cents, or 0.5 per cent, to US$58.05 a barrel on the London-based ICE Futures Europe exchange. Prices gained one per cent last week. The global benchmark crude traded at a premium of US$5.82 to WTI.