Oil Climbs to 18-Month High as Kuwait and Oman Fulfill OPEC Cuts

Futures rose as much as 2.8 percent after adding 45 percent last year, the biggest annual gain since 2009. Officials from Oman and Kuwait told local media they’re cutting oil production in January, fulfilling pledges that they and 22 other producers made on Dec. 10. Prices also advanced as China’s manufacturing purchasing managers index stabilized near a post-2012 high, signaling demand may be supported in the world’s second-biggest oil user.

“The new year sees the start of the output cuts that were agreed between OPEC and some non-OPEC producers,” said Hamza Khan, head of commodities strategy at ING Bank NV in Amsterdam.

West Texas Intermediate for February delivery gained as much as $1.52 to $55.24 a barrel on the New York Mercantile Exchange and was at $55.04 as of 11:35 a.m. London time. There was no trading Monday because of the New Year holiday. Total volume traded Tuesday was about 28 percent above the 100-day average.

Brent for March settlement climbed $1.38 to $58.20 on the London-based ICE Futures Europe exchange, trading at a $2.22 premium to WTI for the same month. The global benchmark contract rose 52 percent last year, the most since 2009.

OPEC member Kuwait has reduced output by 130,000 barrels a day to about 2.75 million a day, Al-Anba newspaper reported, citing Kuwait Oil Co. Chief Executive Officer Jamal Jaafer. Oman is cutting 45,000 barrels a day from 1.01 million, the Oil Ministry’s Director of Marketing Ali Al-Riyami said on Oman TV.
https://www.bloomberg.com/news/articles/2017-01-03/oil-starts-new-year-higher-as-kuwait-delivers-on-opec-output-cut

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