WTI advances above $58 on hopes of further output cuts
|- Iraqi Oil Minister says they will lower ouptput to comply with OPEC agreement.
- Saudi Arabia's new Energy Minister voices support for further supply cuts.
- Coming up: API's weekly crude oil inventory report.
Crude oil preserved its bullish momentum and extending its rally into a fifth straight trading day with the barrel of West Texas Intermediate rising to its highest level since late July at $58.74. As of writing, the WTI was trading at $58.25, adding 0.4% on a daily basis.
Output cut expectations lift WTI higher this week
On Monday, Saudi Arabia's new Energy Minister Prince Abdulaziz bin Salman said that Saudi Arabia's policy with regard to oil output cuts will not change during this term and added that he was expecting the OPEC+ alliance to remain in place for the long-term.
Today, Iraqi Oil Minister Thamer Ghadhban told CNBC that they will reduce the oil production to comply with the OPEC agreement and explained that starting this month, they will lower the output down to 80,000 - 85,000 barrels per day from 205,000 to provide an additional boost to crude oil prices.
Later in the day, OPEC Secretary-General Mohammad Barkindo said that they have been "very conservative" with demand forecasts so far to ease concerns over a dismal energy demand outlook and supported today's rally.
Toward the end of the American session today, the American Petroleum Institue (API) will release the weekly crude oil stock report.
Technical levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.