Oil prices rose on Wednesday after media reports suggested that OPEC and its allies would stick with their agreement to cut oil supply despite pressure from U.S. President Donald Trump to stop artificially tightening markets. Declining U.S. crude inventories also offered some support.
Global benchmark Brent crude climbed 0.7 percent to $65.82 per barrel, while U.S. West Texas Intermediate (WTI) crude oil futures were up 1.1 percent at $56.13 per barrel.
Based on current market data, the OPEC plus group is “likely to continue with the production cuts until the end of the year”, Reuters said, citing sources. The cartel will meet in April to decide its output policy.
The American Petroleum Institute (API) said in a weekly report on Tuesday that U.S. crude oil inventories fell by 4.2 million barrels in the week to Feb. 22.
The official inventory data from U.S. Energy Information Administration is due later in the day.
Investors also keep an eye on escalating tensions between India and Pakistan.
After Indian warplanes destroyed Jaish-e-Mohammad terror camps in Pakistan, the latter said it shot down two Indian jets in its territory.
The material has been provided by InstaForex Company – www.instaforex.com
Source:: Oil Prices Rise On OPEC Supply Cuts