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Crude oil prices retain support

LONDON, October 11, 2017 – Crude oil remained higher for a third consecutive session on Wednesday, supported by indications that the market is gradually rebalancing after years of oversupply.

The U.S. West Texas Intermediate crude November contract was up 10 cents or about 0.20% at $51.02 a barrel by 9:00 a.m. ET (13:00 GMT), the highest since October 2.

Elsewhere, Brent oil for December delivery on the ICE Futures Exchange in London was up 12 cents or about 0.21% at $56.73 a barrel.

Prices were boosted after Saudi Arabia announced plans on Monday to cut monthly exports in November.

 

The move is part of ongoing efforts led by the Organization of the Petroleum Exporting Countries with other producers, including Russia, to curb oversupply and stabilize prices by cutting output in a deal which is due to expire in March 2018.

Oil traders were awaiting OPEC’s monthly report on Wednesday and the International Energy Agency monthly report on Thursday for updated supply and demand forecasts.

Analysts and traders were expecting the weekly data from the U.S. Energy Information Administration to show a decline in crude stockpiles for the week ended October 6. The EIA report is scheduled for release on Thursday.

The market was also waiting on President Donald Trump’s decision on Thursday on whether or not to certify Iran’s compliance with the international nuclear deal. The Persian nation is an OPEC member and key Middle Eastern oil producer.

Elsewhere, gasoline futures were up 0.82% at $1.605 a gallon, while natural gas futures advanced 1.35% to $2.930 per million British thermal units.

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