Oil is rallying after report says OPEC won't nix supply cuts before next year

Saudi oil minister

  • Oil surged Wednesday after a report said that OPEC will likely keep output cuts through the end of the year.
  • Prices had been falling last week after reports said the cartel could increase output before then.
  • Follow oil prices in real time here. 

Oil rallied more than 2% Wednesday after a report said that OPEC could extend supply cuts through the end of the year.

West Texas Intermediate rose 2.2% to $68.35 a barrel at 12:15 p.m. ET. Brent, the international benchmark, was up 2.72% to $77.45 a barrel. Prices had been sliding last week after OPEC signaled it could raise output amid supply disruptions in Venezuela

But output increases might not happen until at least next year. A Gulf source familiar with the thinking of the Saudis, told Reuters that members of the cartel are “satisfied” with the current agreement deadline of December. 

Any output increases next year would be in a “gradual and deliberate fashion,” the source said, adding that the group is “not ready yet to fully lift controls.”

Also pushing up crude, the greenback — which tends to move opposite of dollar-denominated commodities prices — slipped 0.75% on Wednesday versus its major peers

WTI is up 34.4% over the year. 

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Read the full article from it’s original source: http://uk.businessinsider.com/oil-price-opec-keeping-supply-cuts-through-2018-report-2018-5