Crude oil prices moved higher on Thursday as OPEC said that it has all options in place to balance oil markets and that it would take a decision in December regarding supply.
Oil prices were also supported by slightly easing concerns about the outlook for energy demand thanks to rising optimism about high-level U.S.-China trade negotiations.
West Texas Intermediate Crude oil futures for November ended up $0.96, or about 1.8%, at $53.55 a barrel, the highest settlement since October 1.
On Wednesday, WTI crude oil futures for November edged down $0.04 to $52.59 a barrel after having advanced to a high of $53.74 a barrel.
OPEC’s Secretary General Mohammad Barkindo said the meeting between OPEC and allies, including Russia would take decisions that will set the path of heightened and sustained stability for 2020.
Saudi Arabia has said that its oil output dropped by 660,000 barrels per day in September following the devastating attacks on its energy facilities. Meanwhile, OPEC has lowered its forecast for non-OPEC supply growth for 2020.
Crude oil’s rise was also due to reports that Russia and Saudi Arabia will sign more than $2 billion of deals and discuss the OPEC+ oil output agreement during President Vladimir Putin’s first visit to the kingdom in more than a decade next week.
The recent data from U.S. Energy Information Administration that showed crude inventories rose for a fourth straight week limited oil’s gains. The data said crude oil inventories in the U.S. increased by 2.9 million barrels in the week ended October 4.
The material has been provided by InstaForex Company – www.instaforex.com