Breaking News
0

Crude Oil Prices Settle at 8-Week Highs on Prospect of Further Output Cuts

CommoditiesMar 23, 2018 02:31PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

Investing.com – WTI crude oil prices settled at eight-week highs as the prospect of an extension to OPEC-led production cuts into 2019 overshadowed data showing the number of U.S. oil rigs rose to a three-year year.

On the New York Mercantile Exchange crude futures for May delivery rose 2.46% to settle at $65.88 a barrel, while on London's Intercontinental Exchange, Brent rose 2.22% to trade at $70.44 a barrel.

The number of oil rigs operating in the US rose by four to 804, the highest level since March 27, 2015, according to data from energy services firm Baker Hughes.

Yet upbeat comments from Saudi Energy Minister Khalid al-Falih stoked demand for crude after he said OPEC members would need to work with Russia and other non-OPEC oil-producing countries on production cuts into 2019 to reduce global oil inventories .

That comes as Goldman Sachs earlier this week upped its forecast for Brent prices, citing strong emerging market demand and OPEC likely overshooting their inventory rebalancing targets.

“Given continued robust demand growth, particularly in emerging markets and, in our view, OPEC likely to overshoot on the inventory rebalancing, we see spot Brent reaching $82.50 per barrel by mid-year, Goldman Sachs said”

OPEC and Russia agreed in November to extend the 1.8 million barrels per day output cuts through 2018, to rid the market of excess supplies.

The 5.5% rally in crude oil prices this week comes despite data showing U.S. output rose to a record of 10.4 million barrels per day last week. Offsetting that, however, was an unexpected draw in U.S. crude oil supplies.

Crude Oil Prices Settle at 8-Week Highs on Prospect of Further Output Cuts
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
KALEEM MOHAMMED
KALEEM MOHAMMED Mar 24, 2018 12:10AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
What is the trend of crudeoil for coming week... I have sell position at 4085
Reply
0 0
KALEEM MOHAMMED
KALEEM MOHAMMED Mar 24, 2018 12:08AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
What will be price of crudeoil for coming week
Reply
0 0
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email