Oil steady as 80% of Mexican Gulf production goes offline

Brent crude and West Texas Intermediate started the week with some gains as the OPEC Secretary General, Muhammad Barkindo, said that that OPEC needs to do something about the cuts if it wished the oil to move any further.

Prices for oil witnessed a steep loss last week, as News Agencies reported a drop in compliance from OPEC members towards agreed upon cuts. The prices fell 3.3 percent during last week, the sharpest weekly fall in the last four months.

Oil prices were steady on Tuesday as the OEPC Secretary General said that the market is rebalancing after a four year glut that has taken wind away from the sails of Oil Markets. The US oil production on Gulf Coast has declined by nearly 80% in the wake of Storm Nate, as refineries shutdown operations to avoid any mishaps. The Storm is expected to hit ground in the next few days.

U.S. West Texas Intermediate (WTI) crude futures were trading at$49.66 per barrel at 0442 GMT, up 8 cents, or 0.2 percent, from their last close.

Brent crude futures, the international benchmark for oil prices, were up 7 cents, or 0.1 percent, at $55.86 a barrel.

"There is clear evidence that the market is rebalancing," OPEC's secretary general Mohammad Barkindo told Reuters on Monday.

"The process of global destocking continues, both onshore and offshore, with positive developments in recent months showing not only a quickening of the process but a massive drainage of oil tanks across all regions," he said.