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Crude Oil Prices Continue to Climb on OPEC Compliance Boost

Published 01/11/2017, 07:49
Updated 01/11/2017, 07:51
© Reuters.  Crude oil prices rally amid ongoing optimism
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Investing.com - Crude oil prices continued to climb on Wednesday, boosted by signs of improving compliance with the Organization of the Petroleum Exporting Countries's supply cut deal.

The U.S. West Texas Intermediate crude December contract was up42 cents or about 0.77% at $54.80 a barrel by 03:45 a.m. ET (07:45 GMT), the highest since January.

Elsewhere, Brent oil for January delivery on the ICE Futures Exchange in London was up 31 cents or about 0.51% at a two-year high of $61.25 a barrel.

Crude prices were boosted following news OPEC's October output declined by 80,000 bpd to 32.78 million bpd, putting adherence to its pledged supply curbs at 92%, compared to September's 86%.

In addition, Russia said it cut its output by around 300,000 bpd last month, below October 2016 levels of 11.247 million bpd.

The reports came after OPEC’s Secretary General Mohammad Barkindo noted last week comments from both Saudi Arabian Crown Prince Mohammed bin Salman and Russian President Vladimir Putin that suggested they were in favor of a nine-month extension for the current deal to cut production by 1.8 million barrels a day.

He said that their remarks “clear the fog on the way to (the cartel’s next meeting in) Vienna on November 30.”

Meanwhile, market participants were eyeing official U.S. stockpiles data to be released on Wednesday by the U.S. Energy Information Administration.

On Tuesday, the American Petroleum Institute said oil supplies declined by 5.087 million barrels in the week ended October 27, compared to expectations for a fall of 2.100 million barrels.

Elsewhere, gasoline futures were steady at $1.747 a gallon, while natural gas futures rose 0.24% to $2.912 per million British thermal units.

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