Yahoo Finance Crude Prices Settle Higher as OPEC, Russia Reportedly Agree on Plan to Extend Cuts
Investing.com – Crude oil prices settled higher on Friday supported by tighter supplies amid ongoing disruption to the Keystone pipeline, while a report suggesting OPEC and Russia agreed on a plan to extend output curbs lifted sentiment.
On the New York Mercantile Exchange crude futures for December delivery rose 1.6% to settle at $58.95 a barrel, while on London's Intercontinental Exchange, Brent gained 0.58% to trade at $63.90 a barrel.
Crude oil prices settled at above two-year highs as the disruption to the Keystone pipeline connecting Canada’s Alberta oil sands to U.S. refineries continued to limit supplies. The line was shut last week following a 5,000-barrel spill in South Dakota.
Ahead of the OPEC Nov. 30 meeting, investors cheered a report suggesting OPEC and Russia agreed on a plan framework to extend output cuts beyond March.
After days of talks, Moscow and Riyadh now agree they should announce an additional period of cuts at the Nov. 30 meeting, Bloomberg report, citing people involved in the conversations.
The OPEC-led production cuts have been one of the key catalyst supporting the recent rally in oil prices amid expectations that rebalancing in oil markets are well underway.
The report of a potential OPEC-Russia agreement on an extension to the accord comes amid weeks of uncertainty about whether Russia will agree to extend output cuts as fears that major oil producers who are not part of the pact will ramp up output to gain market share.
U.S. crude production rose to weekly record of 9.66 million bpd, the Energy Information Agency said Wednesday.
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