The news that OPEC crude oil production for the month of November may have been greater than previously expected, coupled with a reported rise in US crude inventories have caused a drop in oil prices. Specifically, West Texas Intermediate (WTI) crude oil futures depreciated 61 cents, a 1.3% drop, to $52.37/bbl, while Brent crude futures lost 58 cents, equal to 1.08%, on the way down to $55.14/bbl.
But the first positive signs of post OPEC output cut agreement are visible from the United Araba Emirates. The Abu Dhabi National Oil Company (ADNOC) announced a cut in crude supplies of 3-5% percent across its three export grades to Asia, Kuwait and Oman.
Norway, instead, will grant licenses for 87 new offshore exploration blocks in 2017. The statement, issued by Minister of Petroleum and Energy Tord Lien on Tuesday, concerns the so-called mature areas allowing oil and gas firms access to acreage close to existing developments and discoveries, to tap in to new resources. The 8y licenses to be granted, will include 53 blocks in the Arctic Barents Sea and 34 blocks in the Norwegian Sea.
In the meanwhile, data from the American Petroleum Institute (API) indicates a growth in Chinese crude oil inventories while the Asian Development Bank approved a $499.6 million loan to finance a project to for improved sustainability in the energy, transportation and agricultural sectors.