Crude oil futures ended higher on Thursday, extending gains to a third straight session, amid rising hopes the OPEC and allies will extend output cuts beyond March 2020, and might even consider increasing the quantum of cuts.
A surprise drop in crude inventories in the U.S. last week and the likelihood of the U.S. and China signing the first phase of a trade deal by mid-November too supported oil’s uptick.
Worries about economic slowdown limited oil’s uptick.
West Texas Intermediate Crude oil futures for December ended up $0.26, or about 0.5%, at $56.23 a barrel.
On Wednesday, WTI Crude oil futures for December ended up $1.49, or about 2.7%, at $55.97 a barrel
OPEC and other non-members are set to meet in early December to discuss production cuts beyond March 2020.
Data released by the Energy Information Administration on Wednesday showed crude inventories in the U.S. dropped by about 1.7 million barrels in the week ended October 18, as against expectations for a rise of over 2.2 million barrels.
Gasoline stockpiles were down 3.1 million barrels last week, notably higher than an expected drop, and distillate stockpiles dropped by 2.72 million barrels, almost in line with forecasts.
The material has been provided by InstaForex Company – www.instaforex.com