By Sarah McFarlane 
   -- Oil prices edged higher Monday morning, digesting last week's losses, as 
      indications the Organization of the Petroleum Exporting Countries may cut 
      output at its next meeting helped support the market. 
 
   -- Brent crude -- the global oil benchmark -- was trading up 0.3%, at $66.92 
      a barrel, midmorning on London's Intercontinental Exchange, having lost 
      around 6% in value last week. 
 
   -- West Texas Intermediate futures, the U.S. oil standard, were trading up 
      0.4%, at $56.94 a barrel, on the New York Mercantile Exchange. 

HIGHLIGHTS

U.S. drilling: The number of active oil-directed drilling rigs in the U.S. rose by two, taking the total to 888, weekly data published by Baker Hughes on Friday showed. Drilling activity is the highest level since March 2015, as the U.S. pumps record amounts of crude.

INSIGHT

OPEC: After ramping up production in recent months, the Organization of the Petroleum Exporting Countries and their allies including Russia will meet on Dec. 6 to discuss cutting output, with the recent price collapse indicating the market may now be over supplied. "As we head into year-end there's a little bit of concern that there's too much supply relative to demand," said Michael Hewson, chief market analyst at brokerage CMC Markets. "What we're looking for is the Saudi's to put a floor under prices...the question is will they be able to cut by a sufficient amount to arrest the slide."

Selloff: Last week's sell off in oil markets, triggered by a combination of more Iranian crude being available to the global market than expected, revisions higher to U.S. output and a slowdown in global demand, has reset the outlook for oil prices, analysts said. "It takes a brave oil trader to expect next year's prices average above that of 2018," said Tamas Varga, analyst at brokerage PVM.

AHEAD

   -- The American Petroleum Institute releases its weekly statistical bulletin 
      at 4.30 p.m. Tuesday. 

Write to Sarah McFarlane at sarah.mcfarlane@wsj.com

 

(END) Dow Jones Newswires

November 19, 2018 06:08 ET (11:08 GMT)

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