Oil prices rallied as the US market opened on Wednesday to continue rising for a second consecutive day. US crude jumped to its highest level in four weeks ahead of preliminary data on US crude inventories. Brent crude hit a four-month high, Russian Energy Minister Alexander Novak.
By 12:35 GMT, US crude rose to 49.15 USD a barrel from the opening level of 48.59 USD, recording the highest level of 49.26 USD, the highest since August 10, and the lowest level of 48.51 USD.
Brent crude rose to 54.15 USD a barrel from the opening level of USD 53.18, recording a high of 54.24 USD since May 24 and a low of 53.08 USD.
US crude oil for October delivery closed up 2.7 % on Monday, its biggest daily gain since August 18, and Brent crude futures for November contracts rose 1.9 % in the first gain in three days.
US crude oil inventories are expected to rise for the first time in five weeks as the drag off from Hurricane Harvey hit the coast of Texas last week.
Operations of major refineries and pipelines have begun to return to normal levels prior to Hurricane Harvey.
The hurricane caused heavy losses to the US oil industry, halting about a quarter of the country’s refining capacity, raising gasoline prices to a two year high and forcing the government to withdraw an estimated 1 million barrels of strategic oil reserves for the first time in five years.
MOSCOW (Reuters) – Russia’s Energy Minister Alexander Novak said on Wednesday a global production cut with OPEC could extend beyond the first quarter of next year, with the prospect of new conditions if the market remains unbalanced.
Russia and Saudi Arabia discussed an extension of the global production cut off agreement between OPEC and independent producers after March 2018, but no specific decisions were made, Tosh news agency reported on Tuesday, quoting Novak.
It should be noted that the Committee to monitor the implementation of the Agreement on the reduction of global production has recently recommended the extension of the agreement to cut production for a new period if necessary