Reuters/New York
Oil prices rose nearly 3% on Thursday, extending their rally on optimism over Opec's first output cut plan in eight years, despite some analysts' doubts that the reduction would be enough to rebalance a heavily over-supplied market.
The Organisation of the Petroleum Exporting Countries agreed on Wednesday to cut output to 32.5-33.0mn barrels per day (bpd) from around 33.5mn bpd, estimated by Reuters to be the output level in August.
Opec said other details of the plan will be known at its policy meeting in November, leaving unanswered when the agreement will come into effect, what new quotas for member countries will be and for what periods, and how compliance will be verified.
Earlier in the day, oil was down, with crude futures retreating from their 6% gain on Wednesday, the biggest in a day since April. A steady dollar and weak US stock market also limited some of the upside in oil in early trading.
Brent crude futures were up $1.06, or 2.2%, at $49.75 by 12:30 p.m. EDT. Brent hit a session peak at $49.81, the highest since September 9, after falling to $47.99 earlier.
US West Texas Intermediate (WTI) crude futures rose $1.20, or 2.6%, to $48.25. WTI hit a one-month high of $48.32, after a session low at $46.60.
19 dead after Mumbai building collapses
ECB to activate first line of defence in bond market on Friday
G7 agrees to explore cap on Russian oil price
Russia slips into historic default as sanctions muddy next steps
Most Asian markets bounce as China eases quarantine measures
Qatar a 'key development area' for TotalEnergies’ refining, petrochemical activities: Ghazi Shahin
Qatar to see sustained upward pressure on rents: Oxford Economics
UDC hosts Malta president
Dukhan Bank receives 9 accolades at MEED’s Excellence Banking Awards 2022
There are no comments.