Organizations of the Petroleum Exporting Countries (OPEC) in November 2016 decided to reduce oil output and this agreement enter into force at the first week of 2017.
According to Reuters, oil edged higher on Wednesday, January 4, 2017. Global benchmark Brent crude futures LCOc1 were up 49 cents at $55.96 a barrel by 0924 GMT (4:24 a.m. ET). U.S. West Texas Intermediate (WTI) crude futures CLc1 were trading at $52.82 per barrel, up 49 cents from the last settlement. Weekly U.S. statistics on oil stocks are expected to show a 1.7 million barrel draw on Thursday, January 5, 2017.
Chief commodities analyst at SEB Markets in Oslo, Norway, commented on the situation:
“Positive equities and gains in industrial metals this morning, as well as expectations that U.S. crude oil stocks will show a decline … are ingredients helping to drive a slight gain in Brent crude this morning,” said Bjarne Schieldrop.