Crude Prices Settle Higher as OPEC, Russia Reportedly Agree on Plan to Extend Cuts

Investing.com – Crude oil prices settled higher on Friday supported by tighter supplies amid ongoing disruption to the Keystone pipeline, while a report suggesting OPEC and Russia agreed on a plan to extend output curbs lifted sentiment.

On the New York Mercantile Exchange for December delivery rose 1.6% to settle at $58.95 a barrel, while on London’s Intercontinental Exchange, gained 0.58% to trade at $63.90 a barrel.

Crude oil prices settled at above two-year highs as the disruption to the Keystone pipeline connecting Canada’s Alberta oil sands to U.S. refineries continued to limit supplies. The line was shut last week following a 5,000-barrel spill in South Dakota.

Ahead of the OPEC Nov. 30 meeting, investors cheered a report suggesting OPEC and Russia agreed on a plan framework to extend output cuts beyond March.

After days of talks, Moscow and Riyadh now agree they should announce an additional period of cuts at the Nov. 30 meeting, Bloomberg report, citing people involved in the conversations.

The OPEC-led production cuts have been one of the key catalyst supporting the recent rally in oil prices amid expectations that rebalancing in oil markets are well underway.

The report of a potential OPEC-Russia agreement on an extension to the accord comes amid weeks of uncertainty about whether Russia will agree to extend output cuts as fears that major oil producers who are not part of the pact will ramp up output to gain market share.

U.S. crude production rose to weekly record of 9.66 million bpd, the Energy Information Agency said Wednesday.

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.