Oil prices rise as OPEC seen continuing supply cuts through 2018
U.S. WTI crude futures CLc1 were at $64.57 a barrel at 0242 GMT, up 19 cents, or 0.2 percent, from their previous settlement.
Brent crude futures LCOc1 were at $69.72 per barrel, up 19 cents, or 0.3 percent.
The Middle East-dominated Organization of the Petroleum Exporting Countries (OPEC) together with a group of non-OPEC producers led by Russia in 2017 started cutting output in order to rein in oversupply and prop up the market, informs Reuters.
But sources at OPEC told Reuters this week that the group and its allies were set to keep their deal on cutting production for the rest of 2018.
Despite this, Brent remained below $70 and WTI under $65 per barrel, weighed by rising crude inventories and production in the United States.
Commercial U.S. crude inventories rose by 1.6 million barrels in the last week C-STK-T-EIA to 429.95 million barrels, the Energy Information Administration (EIA) said on Wednesday.
U.S. crude oil production hit a fresh record, at 10.43 million barrels per day (bpd) C-OUT-T-EIA. That puts the United States ahead in output of top exporter Saudi Arabia. Only Russia pumps out more, at 11 million bpd.
That implies a disconnect between financial and physical crude markets, as U.S. crude has been exported to China profitably for the last two years.
The latest drop takes the fall since the contract’s launch on Monday to 10 percent.