Crude Prices Rise Amidst Expectations over Extended and Deepened OPEC-led Supply Curb
U.S. crude oil futures prices gapped up on Monday, supported by speculation that an OPEC-led supply cut to crude supplies will be extended further in a meeting held later this week.
U.S. West Texas Intermediate (WTI) crude futures jumped above $50 per barrel, adding 0.6 percent thanks to expectations that a pledge by the Organization of the Petroleum Exporting Countries (OPEC) and other major producers, including Russia, would be extended by nine months to March 2018.
The option of deepening the production cut to tighten the market and prop up prices was also being discussed ahead of a meeting of OPEC and its allies in Vienna on Thursday.
At a news conference in Riyadh on Sunday, Saudi Arabia’s energy minister Al-Falih said that “We believe that continuation with the same level of cuts, plus potentially adding one or two small producers if they wish to join, will be more than adequate to bring the balances to where they need to be by the first quarter of 2018,”
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