Oil prices rise

Oil prices edged higher on Thursday, after data showed inventory declines in the United States and as investors began to expect that the global oil market could have a deficit sooner than they had previously thought.

OPEC’s output agreement with Russia and Canada’s decision to mandate production cuts could create an oil market supply deficit by the second quarter of next year, if the top producers stick to their deal, the International Energy Agency said in its monthly Oil Market Report.

U.S. crude inventories at Cushing, Oklahoma, the delivery point for U.S. crude futures, fell by nearly 822,000 barrels in the week through Dec. 11, traders said, citing data from market intelligence firm Genscape.

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Brent crude LCOc1 was up 15 cents, or 0.3 percent, at $60.30 per barrel by 10:51 EST (1551 GMT). U.S. light crude CLc1 was 21 cents higher, or 0.4 percent, at $51.36 a barrel.

“The market over the last week has attempted to stabilise and I still think that’s what is happening today,” said Gene McGillian, manager of market research at Tradition Energy in Stamford, Connecticut. — Reuters.
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