It has boosted oil prices to above $55 a barrel and reduced record high inventory levels. U.S. West Texas Intermediate crude futures dropped 0.64% to $50.97 a barrel.
The OPEC agreement with Russian Federation and 10 other producers to take off 1.8 million bpd from the global oil market was originally supposed to last for six months, but in May this year the partners chose to extend it until the end of March 2018.
These forecasts are in conflict with Al-Marzouk's comments about the oil deal not needing another extension: all oil production forecasts for 2018 see higher non-OPEC daily production rates, and if OPEC and its partners end the deal on March 31, this would mean another 1.8 million bpd added to the higher global production. "Collectively, OPEC countries lost more than $1 trillion". United States crude rose 1.3 per cent to $52.12 a barrel, not far from $52.85 touched late last month - a level not seen since April.
The API estimates will be followed by official data on Thursday from the Energy Information Administration (EIA).
OPEC is holding a key ministerial meeting in Vienna on 30 November.
Major producers including OPEC members had a year ago chose to curb crude oil production to 18 lakh barrels per day in order to push the prices to approximately Rs 3900 per barrel.
Experts say that forces of Iraqi central government, Iraqi Kurdish Regional administration (IKBY), initiated operation to get oil wells in hand, preventing upward movement of oil prices, which would result in faster results than expected.
Meanwhile in the US, the Energy Information Administration raised its crude-oil price forecasts for 2018 despite expectations of an increase in domestic production. The report stated that crude oil production in country was predicted to rise to an average of 9.9 million per day in 2018.
Natural gas futures rose 0.83% to $2.913 per million British thermal units.