Crude oil prices rose more than 2% Thursday, following a Reuters report Opec+ members are likely to extend output cuts until mid-2020, while new signs emerged China had invited U.S. trade negotiators for a new round of talks.
Brent crude futures gained $1.57, or 2.5%, to settle at $63.97 a barrel, while West Texas Intermediate crude futures surged to a two-month high, gaining 2.8%, to end the trading day at $58.58/Bbl, Kallanish Energy reports.
To support oil prices, Opec+, which includes most Opec producers along with 10 non-Opec producers led by Russia, is expected to extend production cuts totaling 1.2 million barrels per day to June from March when they meet next month, Opec sources told Reuters.
Opec meets Dec. 5 at its headquarters in Vienna, followed by talks with the non-Opec producers in Opec+.
Sources told Reuters formally announcing deeper cuts looked unlikely for now, although a message about better compliance with existing curbs could be sent to the market.
Also supporting markets, the Chinese commerce ministry said China will strive to reach an initial trade agreement with the U.S., as both sides keep communication channels open.
The Wall Street Journal also reported Thursday China had invited top U.S. trade negotiators for a new round of talks in Beijing, citing unnamed sources.
BNP Paribas raised its oil price forecasts for this year and 2020 from its previous estimates, citing increased refinery throughputs due to upcoming new regulation on shipping fuels.
This post appeared first on Kallanish Energy News.