🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Crude Oil Prices Move Higher on OPEC Extension Deal

Published 01/12/2017, 12:09
Updated 01/12/2017, 12:12
© Reuters. Crude prices gain ground after OPEC extends supply cut deal
LCO
-
CL
-
NG
-
GPR
-

Investing.com - Crude oil prices moved higher on Friday, after the world's major oil producers agreed to extend production cuts until the end of 2018.

The U.S. West Texas Intermediate crude January contract was up 46 cents or about 0.80% at $57.84 a barrel by 07:05 a.m. ET (11:05 GMT).

Elsewhere, Brent oil for February delivery on the ICE Futures Exchange in London was up 62 cents or about 0.99% at $63.25 a barrel.

Prices increased after the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC members led by Russia followed market expectations and agreed on Thursday to extend their supply cuts from March 2018 through to the end of next year.

In November last year, OPEC and 11 other non-OPEC producers, led by Russia, agreed to cut output by about 1.8 million barrels per day between January 1 and June 30.

The agreement was extended in May of this year for a period of nine months until March 2018 in a bid to reduce global oil inventories and support oil prices.

Oil has risen around 17% since the last time producers gathered for an official meeting back in late May with major oil producers not scheduled for another round of negotiations until June.

Saudi energy minister Khalid al-Falih said inventories were expected to decline to the desired targets in the second half of 2018, although he admitted that production from other areas, such as U.S. shale output, remained an unknown.

Elsewhere, gasoline futures were up 0.81% at $1.747 a gallon, while natural gas futures advanced 2.41% to $3.098 per million British thermal units.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.