On Wednesday oil prices continues to post gains in the European market for the fifth consecutive day hitting a six-week high amid the possibilities of extending the agreement of world production cut, especially after comments from Saudi Arabia stated that it supporting and will push OPEC and non-OPEC oil producers for this extension, Meanwhile US crude oil stocks fell for the second consecutive week according to American Petroleum Institute report.
At 09:29 GMT, US crude oil settled at$ 53.70 per barrel from $ 53.38 at the beginning of trading session, it hit its highs $ 53.71 since last 7 March and its lows $ 53.34.
Brent oil rose to $ 56.60 per barrel from $ 56.25 which was recorded at the beginning of the session, it hit its highs $ 56.62 since 1 March and its lows $ 56.22.
Crude oil “May Supply” closed yesterday at 0.6% high, after posting four consecutive days of gains, Brent contracts “June futures” increased by 0.5 % for the possibility of extending the agreement of world production cut for six months.
Saudi Arabia wants to extend the output-cut agreement till the end of this year to boost oil prices, Saudi officials said.
The Wall Street Journal reported that Saudi Arabia has told OPEC and non-OPEC oil producers that it wants to extend the agreement of output-cut beyond June
Last December OPEC and non-OPEC oil producers has agreed to cut world output by 1.8 million barrels for six months, starting in January to June, in an attempt to curb the global supply glut and push prices higher.
Russian Minister of Energy Alexander Novak said he will start negotiations with oil producers in Russia later this month on the possibility of extending the production cut agreement entered into with OPEC.
Unofficially API announced yesterday that US crude inventories fell by 1.3 million barrels for the week ending 7 April, the second consecutive weekly decline, contrary to expectations of a rise of 100,000 barrels.