Oil rose as traders assessed OPEC’s plan to cut production amid warnings from its key ally Russia and the International Energy Agency on making a hasty decision.
Futures in New York climbed 0.2 percent extending the gains on Monday. Producers need to watch the market in the coming weeks before making any decision, said Russian Energy Minister Alexander Novak. Meanwhile, IEA Executive Director Fatih Birol said cutting output may have some negative implications, appealing to all parties to “have common sense in these difficult days.” Saudi Arabia last week had sought cuts of about 1 million barrels a day.
WTI for Jan. delivery rose as much as 24c to $57.44/bbl on Nymex, trades at $57.31 at 9:53am in Tokyo. Contract closed +52c at $57.20 on Monday. Dec. contract +30c to $56.76 before expiring on Monday.Total WTI volume traded about 61% below 100-day average.
Jan. Brent rose 3c to $66.79/bbl on ICE Futures Europe exchange on Monday. Brent ended session at $9.59 premium to WTI for the same month.
Source : Bloomberg