Oil prices rise in anticipation of tighter 2017 market

Oil prices inched up on Monday in anticipation of tighter crude supply going into 2017 following the decision by OPEC and other producers to cut output to prop up prices.

                      Brent crude futures, the international benchmark for oil prices, were trading at $55.64 per barrel at 0218 GMT, up 43 cents, or 0.8 %, from their last close.

U.S. West Texas Intermediate (WTI) crude oil futures were up 47 cents, or 0.9 percent, at $52.37 a barrel.U.S. oil production is also edging up, rising from under 8.5 million bpd in July to almost 8.8 million bpd by mid-December.

Traders said the higher prices in front-month crude futures were due to expectations of a tighter market.

The Organization of the Petroleum Exporting Countries (OPEC) and other producers led by Russia have announced cutbacks of almost 1.8 million barrels per day (bpd) in oil production from January 2017 in an effort to bolster prices to reduce rampant global overproduction which has seen output outstrip consumption for over two years.

 

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