logo
Plus   Neg
Share
Email

Oil Prices Extend Gains On Expected Supply Cuts

Oil prices rose sharply on Tuesday to extend the previous session's rally amid Canada's production cuts and expected supply cuts from OPEC at a meeting in Vienna starting on Thursday.

Global benchmark Brent crude rallied 2.5 percent to $63.23 per barrel after climbing more than 5 percent in intraday trading on Monday.

U.S. West Texas Intermediate (WTI) crude futures were up 2.4 percent at $54.23 per barrel after ending up 4 percent in the previous session.

Alberta Premier Rachel Notley announced that the Canadian province will trim production by 8.7 percent starting January 1.2019 because a shortage of pipeline capacity has caused a glut of Canadian crude.

Analysts expect that Alberta's mandatory output cut will likely drive up Canadian crude prices in coming months. Canada is the largest source of oil imported by the U.S.

Representatives of oil-producing nations will meet in Vienna on Thursday and it is expected that they will agree on a cut of at least 1 million barrels a day in order to boost prices.

Russian President Vladimir Putin said over the last weekend that Russia and OPEC kingpin Saudi Arabia had agreed to renew a pact on oil production cuts.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT