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Price of oil up on Russia’s military actions in Syria
The price of oil and energy stocks rose as Russia's military actions in Syria raised the risk of a wider conflict in the region. Benchmark U.S. oil gained $1.15 to $50.58 in electronic trading on the New York Mercantile Exchange. Brent crude, which is used to price international oils, rose 70 cents to $53.75.
Prices were influenced Monday when the Organization of Petroleum Exporting Countries (OPEC) said in its latest monthly market report U.S. production should slow next year.
"While the increase in non-OPEC supply last year was more than twice that of global oil demand growth, this relationship is expected to flip this year before widening further in 2016 so that world oil demand growth exceeds the change in non-OPEC supply," the 12-member production group said in its latest monthly market update, UPI reported. "This should reduce the excess supply in the market and lead to higher demand for OPEC crude."
Signs that OPEC members were producing full steam ahead, however, created a mixed outcome in early market trading. While OPEC expects U.S. oil production to fall by 100,000 barrels per day next year, production from its members increased 109,000 barrels last month to average 31.6 million bpd.
Low crude oil prices have forced some energy companies to cut staff and spending in an effort to survive the downturn and such countries as Russia, that depend on oil revenue, are struggling.
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