Crude oil rose at European market for the second consecutive day, on Wednesday, in pursuit to expanding its gains, hitting the highest curve over two and a half years. Brent crude futures rose to the highest level over one week after unofficial data released in the United States which showed substantial decline in crude stocks in the world’s top oil consuming country. Traders await the release of official data on stocks, which will be issued later today by the US Energy Information Administration.
By 09:10 GMT, US crude rose to $ 57.90 a barrel from the opening level of $ 57.12, recording a high of $ 57.96 – the highest level since the first of July 2015 – and a low of $ 56.79.
Brent crude rose to $ 63.25 per barrel from the opening level of $ 62.67, recording a high of $ 63.37 and a low of $ 63.65.
US crude oil rose 1.2% at yesterday’s adjustment, in its second gain over three days. Brent futures increased by 0.8%, supported by strong prospects of extending the global production cut-off agreement until the end of 2018.
In the United States, the US Petroleum Institute announced yesterday that crude inventories in the country fell by 6.4 million barrels for the week ended on November 17, in the third weekly decline over one month. Experts expect a decline of 1.5 million barrels
Traders are looking ahead to the release of official data by the US Energy Information Administration, with expectations of a 1.4 million barrel decline.
Oil markets outlook the meeting of The Organization of the Petroleum Exporting Countries (OPEC), which is scheduled to be held on November 30 to discuss the updates in the market and outline the production policy. OPEC currently executes a global agreement with the independent producers to reduce the market supply by 1.8 million barrels per day, the agreement will terminate in March 2018.
OPEC is widely expected to agree to extend the agreement for a further nine-month term until December 2018, knowing that the global stocks are still above the average of five-year curve, besides the rise in oil production in the United States to new record highs.
Analyzes indicate that if OPEC cuts continue, the global inventory surplus will fall to about 50 million barrels over the five-year average in the third quarter of 2018, from the current quarter surplus of 140 million barrels. Oil prices will then trade within $ 65 to $ 70 per barrel.