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Crude Oil Extends Rally amid Talks About Production Cuts Extension

April 11, 2017 at 18:27 by Vladimir Vyun

Crude oil rallied today amid reports that Saudi Arabia talked to other members of the Organization of Petroleum Exporting Countries about extending production cuts. The OPEC reported that it has already made deeper cuts than was initially planned. Meanwhile, Russian Energy Minister Alexander Novak stated that his country is going to cut its output by 250,000 barrels. Russia was among 11 non-OPEC producers that joined the deal to reduce production.

The commodity struggled to keep the rally, though, as market participants were concerned that the OPEC cuts will not be enough to balance the energy market, especially as US oil producers took the opportunity to pump more oil to profit from rising prices.

The Energy Information Administration will release its supply report tomorrow. Experts predicted that the data will show a drop of US inventories by 700,000 barrels. The American Petroleum Institute will release its estimate ahead of the official data.

Futures for delivery of WTI crude oil in May advanced 0.28% to $53.23 per barrel as of 18:08 GMT on NYMEX today. Contract for delivery of Brent crude in June ticked up 0.04% to $56.00 per barrel on ICE.

If you have any questions and comments on the commodities today, use the form below to reply.

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