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Oil Prices Rally for Second-Straight Session Amid OPEC Hopes

Published 12/04/2018, 08:31 AM
Updated 12/04/2018, 08:31 AM
© Reuters.

Investing.com - Oil prices rallied for the second day in a row on Tuesday, as growing expectations that major producers, led by Saudi Arabia and Russia, will agree some form of production cut at a key meeting of OPEC ministers later this week boosted sentiment.

The oil cartel meets in Vienna on Thursday.

December West Texas Intermediate crude, the U.S. benchmark contract, was up 97 cents, or roughly 1.8%, to $53.92 a barrel by 8:30 AM ET (13:30 GMT).

International Brent crude oil futures jumped $1.25, or about 2%, to $62.94 per barrel.

Both crude benchmarks climbed by around 4% on Monday.

OPEC and its allies are working towards a deal to reduce oil output by at least 1.3 million barrels per day (bpd), four sources said, adding that Russia's resistance to a major cut was so far the main stumbling block.

The sources, three from OPEC and one from a non-OPEC producer, said the meetings were taking place in a difficult environment and that Russia's position would be key in reaching a deal.

United Arab Emirates Energy Minister Suhail bin Mohammed al-Mazroui said on Tuesday that an adjustment in global oil output is required and all producers must be on board.

Looking ahead, the American Petroleum Institute is due to release its weekly report for the week ended Nov. 30 at 4:30PM ET (21:30 GMT).

The U.S. Energy Information Administration's weekly report will be released on Thursday, a day later than usual because of Wednesday’s national day of mourning following the passing of former President George H.W. Bush.

In other energy trading, gasoline futures rose 2.4% to $1.473 a gallon, while heating oil gained 2.4% to $1.932 a gallon.

Natural gas futures climbed 3% to $4.473 per million British thermal units.

-- Reuters contributed to this report.

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