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Crude Oil Prices Rally on Sustained Upbeat Outlook

Published 13/10/2017, 08:49
© Reuters.  Crude oil remains supported on upbeat EIA report
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Investing.com - Crude oil prices rallied on Friday, supported by news in the previous session of a third weekly decline in U.S. crude stockpiles and amid global signs the market is tightening.

The U.S. West Texas Intermediate crude November contract was up71 cents or about 1.40% at $51.33 a barrel by 03:45 a.m. ET (07:45 GMT), off Wednesday's more than one-week highs of $51.41.

Elsewhere, Brent oil for December delivery on the ICE Futures Exchange in London was up 80 cents or about 1.44% at $57.06 a barrel.

Prices rose after the U.S. Energy Information Administration said in its weekly report on Thursday that crude oil inventories fell by 2.75 million barrels in the week ended October 6.

The commodity was also supported after the Organization of the Petroleum Exporting Countries indicated, in its monthly report on Wednesday, that market rebalancing will continue amid forecasts that global oil demand will rise by around 30,000 barrels a day for this year and 2018.

In its own monthly report on Thursday, the International Energy Agency said that global supply and demand for crude oil will be largely balanced next year.

Meanwhile, traders were awaiting a decision later on Friday by U.S. President Donald Trump on whether to continue to certify the 2015 Iran nuclear deal.

Trump was expected not to certify the agreement, which has to be re-certified every 90 days and is due for renewal on Sunday.

The Persian nation is an OPEC member and key Middle Eastern oil producer.

Elsewhere, gasoline futures were up 1.04% at $1.604 a gallon, while natural gas futures added 0.17% to $2.994 per million British thermal units.

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