OPEC+ expected to deepen output cuts to 1.5 million bpd - JPM

Oil prices gain as investors eye deeper OPEC cuts

Iraq says OPEC & allies may extend oil output curb to 1.6 million bpd

While Iraq's Oil Minister Thamir Ghadhban reiterated that an additional cut of about 400,000 barrels a day may be needed to offset slowing demand, an advisory committee for the Organization of Petroleum Exporting Countries didn't discuss deeper reductions when they met in Vienna on Tuesday.

WTI and Brent crude oil futures are extending their gains after the EIA reported a 4.9 million barrel draw down.

West Texas Intermediate for January delivery climbed 27 cents, or 0.5%, to $56.37 a barrel on the New York Mercantile Exchange as of 7:42 a.m.in London.

The OPEC countries plus Russian Federation will gather in Vienna, the Austrian capital, on 5-6 December to discuss oil output levels in 2020.

Reports on Monday that OPEC+ was considering deeper cuts helped lift oil prices.

As it stands, OPEC nations have agreed to cut production by 1.2 million barrels per day through March 2020, and most analysts expect OPEC nations to extend those production cuts until at least summer.

Saudi Arabia is pushing the plan to deliver a positive surprise to the market before the initial public offering of state-owned Saudi Aramco, the sources said.

Crude has climbed since early October on signs the US and China were edging closer to an initial trade deal.

On Friday, WTI futures settled 5.1% lower while Brent plunged 4.4% on concerns that talks to end the trade war between the United States and China, the world's two biggest oil users, would be disrupted by USA support for protesters in Hong Kong.

"If they just keep the existing situation, there will be a massive oversupply", said Jacques Rousseau, managing director of Clearview Energy Partners. "Granted, there's some unrest going on in the country, but I don't think they'll voluntarily reduce".

Oil rose as the USA and China moved closer to a trade deal and before the OPEC+ alliance meets later this week to consider extending its output-cut policy.

President Donald Trump told reporters in London that he didn't have a deadline after being asked if he sees phase one of a trade deal with China concluding this year.

OPEC's production dropped last month led by Angola, whose output fell to the lowest in more than a decade. That could enable him to produce more oil.

Saudi Arabia is also pressing Iraq and Nigeria to improve their compliance with their output quotas as a condition for Saudi cutting more output. "Russia's going to be the first party looking to fill that gap", Heldman said.

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