Oil Prices Gain On Strong OPEC Supply Cut Pact


Gerard Izuora

Crude oil prices extended gains on Thursday as Organization of Petroleum Exporting Countries, OPEC’s strong compliance with a supply reduction pact offset news that U.S. production topped 10 million barrels per day for the first time in nearly half a century.

Crude for March delivery rose 18 cents, or 0.3 percent, to $64.91 a barrel after ending the last session up 0.4 percent.
London Brent crude for April delivery had yet to start trading, after settling on Wednesday up 3 cents at $68.89.

U.S. crude oil production in November surpassed 10 million barrels per day for the first time since 1970, and neared the all-time output record, the Energy Information Administration said on Wednesday.

Oil output by the OPEC, also rose in January from an eight-month low as higher output from Nigeria and Saudi Arabia offset a further decline in Venezuela and strong compliance with a supply reduction pact, a Reuters survey found.

However, adherence by producers included in the deal to curb supply rose to 138 percent from 137 percent in December, the poll found, suggesting commitment is not wavering even as oil prices hit their highest level since 2014.

U.S. crude inventories rose by 6.8 million barrels last week, after 10 straight weeks of declines, U.S. Energy Information Administration data showed on Wednesday. Analysts had expected a decrease of 126,000 barrels.

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