5.4 C
New York
Friday, December 3, 2021

Crude Oil Prices Settle 2.2% Higher on Report OPEC May Stick to Output Cuts

Crude Oil Prices Settle 2.2% Higher on Report OPEC May Stick to Output Cuts© Reuters.

Investing.com – WTI crude oil prices snapped their seven-day losing streak to settle higher following a report OPEC and its allies would stick to the global production-cut agreement.

On the New York Mercantile Exchange for July delivery rose 2.2% $68.21 a barrel, while on London’s Intercontinental Exchange, rose 2.98% to trade at $77.74 a barrel.

Crude oil prices found their footing following a Reuters report, citing a Gulf source, that OPEC and its allies would stick to the global production-cut agreement, easing weeks of investor fears output would be raised to offset the prospect of lower output from Iran and Venezuela.

OPEC and its allies would not immediately raise output but adopt a reactionary approach to gradually offset any supply shortage, Reuters said, citing a Gulf source familiar with the matter.

The comes against a backdrop of contrasting comments from Russia Energy Minister Novak who said recently that a return to oil production levels that were in place in October 2016, was one the options for easing production curbs.

The production-cut agreement has slashed excess global oil supplies to just above the five-year average.

In November 2016, OPEC and other producers, including Russia agreed to cut output by 1.8 million barrels per day (bpd) to slash global inventories to the five year-average. The OPEC-led deal was renewed last year through 2018.

The rebound in crude prices comes a day ahead of a fresh batch of inventories data from the U.S. Energy Information Administration data due 11:00 ET Thursday expected to show U.S. crude stockpiles rose by 2.214 million barrels last week.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com

Related Articles

Stay Connected

- Advertisement -

Latest Articles

Popular Articles