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Global oil prices have marched towards its biggest two-day advance since June as the increasing concerns over a supply glut established after OPEC and its allies announced to strike a deal to stabilize the market.
Futures in New York inclined by around 1.3 per cent, supported by Monday’s 4 per cent gain. There is a speculation in the market that an accord between Saudi Arabian Crown Prince Mohammed bin Salman and Russian President Vladimir Putin might take place, regarding the production cuts when OPEC and its partners meet in Vienna on December 6.
OPEC President and the United Arab Emirates Energy Minister Suhail Al Mazrouei stated that he is optimistic that an agreement between the Organization of Petroleum Exporting Countries and its allies will be reached.
Meanwhile, Canadian province Alberta, which is the country’s largest oil-producing province, announced cuts in oil production. On Sunday the province announced to lower production of raw crude and bitumen by 325,000 barrels a day or 8.7 per cent, from January onwards, until excess oil in storage is drawn down.
West Texas Intermediate for January delivery rose as much as 66 cents to $53.61 a barrel on the New York Mercantile Exchange and was at $53.52 in Seoul. Futures jumped $2.02 to close at $52.95 on Monday. Total volume traded Tuesday was about 12 per cent above the 100-day average.
