Oil prices jump to $61 over OPEC+ supply cut reports

OPEC oil output dips in November ahead of Aramco IPO, Dec. policy meet

Oil prices jump to $61 over OPEC+ supply cut reports

For the record, OPEC ally Russian Federation opposes deeper cuts or a longer extension, but pundits point out that Moscow has often taken a tough stance before every meeting (this latest one scheduled for Thursday) before approving policy. But Moscow has often taken a tough stance before every meeting before approving the policy.

Kholifey said that the Saudi banking sector has continued to achieve high growth rates, noting that real estate mortgages grew by 21% year-on-year (YoY) during the third quarter (Q3) of 2019.

Although the IPO has received more than enough bids, the level of interest so far is relatively muted compared with other emerging market IPOs, including the listing of a top Saudi bank in 2014 that was oversubscribed many times over.

On Friday Brent and USA crude both fell on concerns that talks to end the trade war between the United States and China, the world's two biggest oil consumers, would be disrupted by U.S. support for protesters in Hong Kong.

Brent futures rose 19 cents, or 0.3 percent, to $61.11 a barrel by 0218 GMT, after gaining 0.7 percent on Monday. The company has yet to announce the price, which it said will happen when it announces the listing.

OPEC's ministers will meet in Vienna on Thursday and the wider OPEC+ group will gather on Friday. The OPEC+ grouping holds talks on Dec.6.

Saudi officials, including Prince Abdulaziz, have insisted on stricter compliance with the current cuts, especially as countries such as Iraq and Nigeria have produced well above their quotas, while Riyadh has cut more than demanded.

It is not certain OPEC+ will agree this week to deepen its curbs.

But US production keeps rising, led by shale oil, filling the gaps left by OPEC.

Cement production in the kingdom has been rising in the past three months, with output in October the highest in the past year.

"The liquidity situation in Saudi banks is strong despite Aramco's IPO, and it is now under our watch since the first day of Aramco's IPO, but in the meantime we are interested in the volume of loans that went out and are closely monitoring the banks", Kholifey added.

Julius Baer's Norbert Rucker said that "the most likely outcome next week is an extension of the supply deal for another six months, wrapped in flowery communication leaving the room open for further loose compliance and policy adjustments should market conditions change".

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