Oil prices have made gains due to reports that one of the largest oil exporting members in OPEC, Saudi Arabia, has been lobbying for an extension of the production-cut deal beyond June. 

Reuters reported that Brent crude futures climbed 20 cents to touch $56.43 per barrel, the highest since early March.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

US West Texas Intermediate (WTI) crude futures gained 18 cents to be traded at $53.58 a barrel, which is also their highest price level since early March. 

According to a report by Wall Street Journal, Saudi Arabia has informed other members of the oil organisation that it wants to extend a coordinated production cut beyond the first half of this year.

OPEC members and other oil producers have decided to cut their production by 1.8 million barrels a day for the first six months of 2017, which is scheduled to end in June. 

See Also:

The compliance level among most member countries has been high. Saudi Arabia is reported to have reduced its output by nearly 4.5%.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
"Saudi Arabia is reported to have reduced its output by nearly 4.5%."

Despite this output-cut initiative, the oil market remained largely oversupplied due to rising US production and stockpiles.

Saudi Arabia provided its important customers in Asia with all contract volumes fearing a loss of market share.

The Energy Information Administration (EIA) said that next year, US crude oil output would grow to 9.9 million barrels per day (bpd) from the current 9.22 million bpd.

As demand is expected to increase by 340,000bpd next year, the increase in production will swell US inventory.

American Petroleum Institute indicated a fall in US inventory this week.

Image: An offshore platform in the North Sea. Photo: courtesy of Swinsto101/ Wikipedia.