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Crude Oil Prices Rise as OPEC Says Market Coming into Balance

Published 10/10/2017, 09:43
Updated 10/10/2017, 09:49
© Reuters.  Oil prices higher as OPEC says market is rebalancing
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Investing.com - Crude oil prices pushed higher on Tuesday after the Organization of the Petroleum Exporting Countries said Monday that there is “clear evidence” the market is rebalancing after years of oversupply.

U.S. West Texas Intermediate (WTI) crude futures were up 19 cents, or around 0.38%, to $49.77 a barrel by 04:41 AM ET (08:41 GMT).

Brent crude, the benchmark for oil prices outside the U.S., tacked on 26 cents or about 0.47% to trade at $56.05 a barrel.

Prices remained supported after OPEC Secretary-General Mohammed Barkindo said in a speech Monday that there are clear signs that the oil market is coming into balance and that the group remains committed to its goal of reducing global stockpiles.

OPEC has spearheaded an effort to reduce output in order to end years of overproduction that led to a massive global supply glut.

The remarks helped oil prices to stabilize on Monday after they fell more than 2% on Friday amid concerns that Hurricane Nate would curb demand from refiners.

Oil traders were looking ahead to monthly reports from OPEC and the International Energy Agency on Wednesday and Thursday respectively to assess global oil supply and demand levels.

Weekly reports on U.S. stockpiles of crude and refined products, also due out on Wednesday and Thursday will be scrutinized for signs of the impact of recent storm activity on supply and demand.

The reports come out one day later than usual due to the U.S. Columbus Day holiday on Monday.

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 0.96%, to $1.5700 a gallon, while heating oil rose 0.43% to $1.7427 a gallon.

Natural gas futures were up 0.46% to $2.864 per million British thermal units.

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