Oil futures prices firmed early Wednesday, trending back near the five-month closing highs reached earlier this week, as investors digested a monthly OPEC report that showed significant March output cuts by the cartel and its allies.
OPEC’s oil production fell significantly in March on the back of Saudi Arabia-led output curbs and outages in Venezuela resulting from political and economic unrest. In its closely-watched monthly oil market report, the Organization of the Petroleum Exporting Countries said its crude-oil output had fallen by 534,000 barrels a day month-on-month, to average 30.02 million barrels a day in March, according to secondary sources at the meetings, the Wall Street Journal reported.
U.S. benchmark West Texas Intermediate crude for May delivery on the New York Mercantile Exchange rose 35 cents, or 0.6%, at $64.33 a barrel. Prices are trying for their seventh higher day in the past eight after the contract marked the strongest finish since Oct. 31 on Monday, according to Dow Jones Market Data.
June Brent was up 22 cents, or 0.3%, to $70.83 a barrel on ICE Futures Europe. The contract’s settlement at $71.10 on Monday was the highest for a front-month contract since Nov. 7.
Source : Market Watch