Crude oil futures rose higher overnight and into this morning’s Asian trade session. Traders digested news that the Organization of the Petroleum Exporting Countries (OPEC) are likely to stick with supply cuts for the foreseeable future. There were also inventory declines in the United States that boosted the price of the WTI contract.
U.S. West Texas Intermediate crude (WTI), for front month delivery, closed Monday up 57 cents to settle at $59.09 a barrel. This was a gain of one percent and its best closing price since November 12. This contract, early in the session overnight, hit a four month intraday high at $59.23 per barrel.
The international benchmark, Brent crude was up 38 cents, or half a percent, to settle Monday at $67.54. This contract reached a 2019 intraday high at $68.14 during the previous week.
The Brent futures contract has gained 25 percent since January thanks to OPEC led supply cuts. Non-member OPEC allies led by Russia have also cut supply. There is also sanctions on Venezuela and Iran, by the US, reducing global supply.
Crude Oil Traders Digest OPEC Headlines on Supply
The OPEC+ met, yesterday in Azerbaijan, to discuss their current supply reduction accord. OPEC+ members said that they would exceed commitments over the next several months.
OPEC+ also agreed to cancel their April meeting and they will not meet again before June. On Sunday, Saudi Arabia said that the cartel might need to extend the 1.2 million barrels per day of supply cuts further and past June. They think up until the last half of 2019.