WTI, Brent crude oil futures settle higher

These pacts were formed for six months.

OPEC pledged to reduce output by the 11 countries to 29.804 million bpd. They have sent rigs back into the field and are working to boost output after more than a two-year industry recession. Absent such conditions, the larger-than-expected ramp up in U.S. activity and the sooner than expected shift by the oil majors to refocus on growth observed so far this year should ultimately be the incentive for an only short duration cut.

The return of drilling rigs and roustabouts to US shale fields could lift the nation's daily crude output to 10.1 million barrels by the fourth quarter of 2018, just 30,000 barrels under the November 1970 record, the Energy Information Administration said Tuesday.

The forecast was revised up by 176,000 barrels per day due to higher than expected growth in the United States and lesser contractions in Colombia and China.

Despite increasing shale output, the space is looking up courtesy of some favorable factors, like those that we have highlighted below. Russian Federation and 10 other non-Opec producers agreed to cut half as much. Several OPEC countries, including Kuwait, are already in favor of an extension.

"The oil bears were in retreat because OPEC appears to be complying pretty well to the quota and the likelihood that the cuts will be extended", Lynch said. Payrolls are once again rising in the oil and gas sector according to ADP job numbers. "On the one hand, it seems logical to assume that OPEC will expand the agreement to prevent triggering a large drop in oil prices", ABN Amro senior energy economist Hans van Cleef said.

"Maybe the weekly EIA data ... made buyers cautious and as a result WTI settled only 32c per barrel (bbl) higher at $53.40/bbl and Brent 25c/bbl up at $56.23/bbl". And spending continued to rise in the first quarter.

The biggest producer in OPEC cut output by 111,000 barrels a day last month to 9.9 million a day, according to the person, who asked not to be identified because the information is not public, Bloomberg reported.

The surprise airstrikes supported crude prices not just recently but based on older data where threat of conflict has helped oil prices trade by as high as $100 per barrel although the past three years has not reacted dramatically to previous geopolitical threats and could have easily been solved by the global oversupply.

Hedge funds increased bets on higher West Texas Intermediate crude prices for the first time in six weeks, shrugging off rising USA supplies, as the coming driving season is expected to help ease the glut, according to Bloomberg.

Nickel supply received potential shock as Philippines President Duterte raised possibility of banning all domestic mining activity.

  • Anthony Vega