Oil prices rise slightly on signs of market rebalancing
Oil prices have improved after OPEC stated that there are clear signs of rebalancing in the crude market.
Brent crude futures climbed 12 cents to $55.91 a barrel, while the US West Texas Intermediate (WTI) crude futures gained 7 cents to $49.65, reported Reuters.
The market received support after OPEC’s secretary general Mohammad Barkindo told the news agency: "The process of global destocking continues, both onshore and offshore, with positive developments in recent months showing not only a quickening of the process but a massive drainage of oil tanks across all regions."
The OPEC-led production cuts started in January this year and helped reduce the global oil glut that caused a sharp fall in the oil prices.
The deal is set to end on 31 March next year, with parties discussing a possible extension, but without having yet reached an agreement.
In addition, the oil market also received short-term support as nearly 85% of the US Gulf of Mexico oil production was suspended following the impact of Hurricane Nate, representing 1.49 million barrels a day.
However, disruptions are expected to end soon with production resuming in several Gulf platforms and refineries.
In the last ten months, oil production in the country has increased by nearly 10% to more than 9.5 million barrels per day that partially offset the effect of OPEC’s efforts to tighten the market.