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Crude Oil Prices Rise Amid Signs That Market is Tightening

Published 11/10/2017, 09:07
Updated 11/10/2017, 09:12
© Reuters.  Oil prices rise amid signs that market is tightening
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Investing.com - Crude oil prices were higher for a third day on Wednesdays amid indications that the market is gradually rebalancing after years of oversupply.

U.S. West Texas Intermediate (WTI) crude futures were up 20 cents or around 0.39% to $51.12 a barrel by 04:04 AM ET (08:05 AM GMT).

Brent crude futures, the benchmark for oil prices outside the U.S., tacked on 16 cents or about 0.28% to trade at $56.77 a barrel.

Prices remained supported after Saudi Arabia announced plans on Monday to cut monthly exports in November.

The move is part of ongoing efforts led by the Organization of the Petroleum Exporting Countries with other producers, including Russia, to curb oversupply and stabilize prices by cutting output in a deal which is due to expire in March 2018.

The gains came ahead of a data-heavy week for oil, which traders would shed more light on efforts to end years of overproduction that led to a massive global supply glut.

Oil traders were awaiting OPEC’s monthly report on Wednesday and the International Energy Agency monthly report on Thursday for updated supply and demand forecasts.

Meanwhile, analysts and traders expect weekly data from the U.S. Energy Information Administration to show a decline in crude stockpiles for the week ended Oct. 6. The EIA report is scheduled for release on Thursday.

The American Petroleum Institute is scheduled to release its inventory data for last week at 04:35 ET (08:30 PM GMT) on Wednesday.

The market was also waiting on President Donald Trump’s decision on Thursday on whether or not to certify Iran’s compliance with the international nuclear deal. The Persian nation is an OPEC member and key Middle Eastern oil producer.

Elsewhere on Nymex, gasoline futures rose 0.22% to $1.5955 a gallon, while heating oil rose 0.33% to $1.7712 a gallon.

Natural gas futures were up 0.48% to $2.905 per million British thermal units.

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