Oil rises on deepening supply cuts
Market news selected by the DBS Chief Investment Office
Crude oil held onto gains after an industry report showed expanding US inventories as the Organization of the Petroleum Exporting Countries (OPEC) and allied oil producers mull deepening supply cuts.
Futures settled 1.6% higher in New York on Tuesday (22 October) before the American Petroleum Institute disclosed a 4.45m-barrel increase in crude inventories, according to people familiar with the data. If confirmed by a government tally on Wednesday, it will be the longest run of gains in almost a year.
Prices rose earlier after Reuters reporter that OPEC members are concerned about the outlook for demand next year.
US benchmark futures have been under pressure for the past six months as the protracted US-China trade war imperiled worldwide energy demand. US President Donald Trump on Monday said negotiations are progressing, raising expectations that the world’s largest economies may sign a deal as soon as next month.
West Texas Intermediate (WTI) crude for November delivery, which expired Tuesday, rose 1.59% to settle at USD54.16 a barrel on the New York Mercantile Exchange.
Brent for December settlement increased 1.26% to close at USD59.70 on the London-based ICE Futures Europe Exchange. The global benchmark crude traded at a premium of USD5.22 to WTI for the same month as of the close. – Bloomberg News.
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