NEW YORK, Oct 6 (Reuters) - Oil rose more than 1 percent to four-month highs on Thursday, spurred by another informal OPEC meeting on output cuts and plunging U.S. crude inventories, with some saying the market has overshot itself with a near 15-percent gain in seven sessions.

Saudi, Iranian and Iraqi energy ministers will be among key OPEC representatives to meet non-OPEC member Russia on the sidelines of an energy conference next week in Istanbul, OPEC sources said.

Oil has gained more than $6 a barrel since the Organization of the Petroleum Exporting Countries announced at informal talks in Algeria on Sept. 28 that it hopes to reduce output to 32.5 million-33 million barrels per day. That would remove about 700,000 bpd from a global glut estimated by analysts at 1.0 million-1.5 million bpd.

http://www.downstreamtoday.com/news/article.aspx?a_id=53800

That $6 is about $6 billion/month more in OPEC's pockets. Now that OPEC are starting to feel the fruits of a production cut, they will surely carry it through when they meet again in November.

 

This is what EIA is saying: "real (2016 dollars) crude oil prices recover from an
annual average of less than $50/barrel (b) in 2017 to more than $130/b in 2040"

 

Coffee taste good this morning.