Investing.com – WTI crude oil prices snapped their seven-day losing streak to settle higher following a report OPEC and its allies would stick to the global production-cut agreement.
On the New York Mercantile Exchange crude futures for July delivery rose 2.2% $68.21 a barrel, while on London's Intercontinental Exchange, Brent rose 2.98% to trade at $77.74 a barrel.
Crude oil prices found their footing following a Reuters report, citing a Gulf source, that OPEC and its allies would stick to the global production-cut agreement, easing weeks of investor fears output would be raised to offset the prospect of lower output from Iran and Venezuela.
OPEC and its allies would not immediately raise output but adopt a reactionary approach to gradually offset any supply shortage, Reuters said, citing a Gulf source familiar with the matter.
The comes against a backdrop of contrasting comments from Russia Energy Minister Novak who said recently that a return to oil production levels that were in place in October 2016, was one the options for easing production curbs.
The production-cut agreement has slashed excess global oil supplies to just above the five-year average.
In November 2016, OPEC and other producers, including Russia agreed to cut output by 1.8 million barrels per day (bpd) to slash global inventories to the five year-average. The OPEC-led deal was renewed last year through 2018.
The rebound in crude prices comes a day ahead of a fresh batch of inventories data from the U.S. Energy Information Administration data due 11:00 ET Thursday expected to show U.S. crude stockpiles rose by 2.214 million barrels last week.