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Oil Prices Continue Rally on OPEC Production Cut Plans
Oil futures rose again on Tuesday, posting their 11th gain in 13 sessions on trader optimism that new cutbacks in production will prop up petroleum prices.
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Oil futures rose again on Tuesday, posting their 11th gain in 13 sessions on trader optimism that new cutbacks in production will prop up petroleum prices.
That view was bolstered by reports that U.S. stockpiles of oil are finally beginning to shrink. Today’s U.S. and global benchmark prices rose 13 cents to $51.26 per barrel and 9 cents to $53.96 per barrel, respectively.
The Organization of the Petroleum Exporting Countries, along with Russia and several other non-cartel members agreed late last year to trim their combined output and reduce the global glut in commercially available oil.
The group pledged to lower their combined output by 1.8 million barrels per day, or roughly 2% of the world’s output, between January and June. Now they are moving toward agreement to extend the reduction for 6-9 months. It's also possible they will announce further production cuts too when they meet in Vienna on Thursday.
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