Crude oil rises amid optimism about a commitment to cut output

20/04/2017 03:59 | Number of readings:

Trend Press / Agencies

Oil prices rose in European trading on Thursday, rebounding from a six-week low amid optimism that OPEC will expand its current deal with non-OPEC members to cut output beyond June in an attempt to rebalance the market.

"We expect a global agreement to cut oil supplies to be extended beyond June, supported by greater compliance by non-Opec producers," Reuters quoted Kuwait's Oil Minister as saying.

In November last year, the Organization of Petroleum Exporting Countries (OPEC) and other producers, including Russia, agreed to cut production by 1.8 million bpd between January and June.

A joint committee of ministers of the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC members will meet in late April to make a recommendation on the fate of the treaty. The final decision on whether to extend the deal after June will be made by the oil organization on May 25.

London Brent crude for June delivery rose 38 cents, or 0.7 percent, to $ 53.31 a barrel, after falling $ 1.96 in the previous session.

Elsewhere, crude for June delivery rose 34 cents to $ 51.18 a barrel.

Oil has continued to rise in a familiar range since the beginning of the year amid concern that a continued recovery in US shale production and an increase in US inventories could hamper the efforts of other major producers to rebalance global supply and demand for oil.