Oil is trading around the $51 a barrel as OPEC Secretary-General Mohammad Barkindo reiterated a rapid re-balancing is underway while predicting robust crude demand next year.

Energy futures climbed 0.4% in New York following a 3.3% advance in the previous two sessions.

While the global economic recovery has gained traction, the current cycle of low prices is unprecedented according to Barkindo.

Saudi Arabia’s output for the month of November is expected to drop to the lowest since January 2015.

The commodity has managed to compensate this week for its biggest weekly loss since May amid speculation that an increasing global output could counter supply curbs which are lead by the members of the OPEC.

Market participants are looking forward to the first of the crude inventory which is due tonight in the US from the American Petroleum Institute, which is expected to show renewed drawdowns in inventories

The move is part of ongoing efforts led by the Organization of the Petroleum Exporting Countries with other producers, including Russia, to curb oversupply and stabilize prices by cutting output in a deal which is due to expire in March 2018.

The gains came ahead of a data-heavy week for oil, which traders would shed more light on efforts to end years of overproduction that led to a massive global supply glut.

Oil traders were awaiting OPEC’s monthly report on Wednesday and the International Energy Agency monthly report on Thursday for updated supply and demand forecasts.

 

Bloomberg Crude Oil 15 Minutes Chart
Bloomberg Crude Oil 15 Minutes Chart