Oil Holds Gains Near Five-Week High on Stronger Demand Outlooks

Sep 20, 2017 5:08 pm ET

(Bloomberg) -- Oil held gains near a five-week high as the International Energy Agency and OPEC boosted demand forecasts.

Futures were little changed in New York after rising 3.8 percent in the previous three sessions. Global demand will climb this year by the most since 2015, the IEA said Wednesday. OPEC on Tuesday raised estimates for the amount of crude it will need to supply in 2018 on stronger consumption from Europe and China. U.S. oil output gained last week as operations returned after Hurricane Harvey.

Oil in New York has averaged about $49 a barrel this year as the effort to drain a global glut by the Organization of Petroleum Exporting Countries and partners including Russia is stifled by increasing output from the U.S. to Libya. OPEC and its allies are discussing extending supply cuts past the end of March by more than three months, according to people familiar with the matter.

West Texas Intermediate for October delivery was at $49.25 a barrel on the New York Mercantile Exchange, down 5 cents, at 7:33 a.m. in Hong Kong. Total volume traded was about 71 percent below the 100-day average. Prices rose $1.07 to $49.30 on Wednesday, the highest close since August 9.

Brent for November settlement added 89 cents, or 1.6 percent, to $55.16 a barrel on the London-based ICE Futures Europe exchange on Wednesday. The global benchmark ended the session at a premium of $5.41 to November WTI.

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