Oil Caps Longest Winning Streak Since August Ahead of OPEC Cuts
Oil climbed in New York, capping the longest winning run in more than four months amid optimism that output cuts by major producers will help eliminate a supply glut.
Futures advanced 1.7 percent in New York, rising for a seventh session to the highest close in more than 17 months. Prices are set to recover next year as production cuts help to re-balance an oversupplied market, Saudi Arabia’s Energy Minister Khalid Al-Falih said last week. OPEC and 11 nations from outside of the group, including Russia, have agreed to trim about 1.8 million barrels a day next year. As inventories return to equilibrium, Brent prices should stabilize between $60-$70 a barrel, Venezuela Oil Minister Eulogio Del Pino said.
Written by Jessica Summers at Bloomberg