Investing.com – Crude oil prices settled higher as investors cheered upbeat commentary on oil market rebalancing while data showing Cushing inventories declined lifted sentiment.
On the New York Mercantile Exchange for March delivery rose 22 cents to settle at $61.90 a barrel, while on London’s Intercontinental Exchange, fell 51 cents to trade at $65.16 a barrel.
“We have seen a remarkable year in 2017 – the market of crude has been restored and went to healthy numbers,” United Arab Emirates Energy Minister Suhail Al Mazrouei said at the International Petroleum Week conference in London on Tuesday. “Ahead of us this year is the balance of supply and demand.”
That helped crude extend its positive start to the week after settling higher on Monday, while ongoing reduced flows from TransCanda’s Keystone pipelined slashed Cushing stockpiles to a nearly three year low.
A drop in cushing supplies come against the backdrop rising US output which shows no sign of abating, threatening to dampen OPEC’s efforts to rein the market of excess crude supplies. Offsetting that, however, were comments from UAE Suhail Al Mazrouei, mentioning that OPEC and its oil producing allies could continue oil cooperation beyond 2018.
The number of oil rigs operating in the US jumped by seven to 798, the highest level since April 2, 2015, according to data Friday from energy services firm Baker Hughes.
The American Petroleum Institute weekly inventory report is slated for Wednesday after US markets close.
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Source: Investing.com
