Oil Futures Rebound After Early Losses, Settle Sharply Higher
Crude oil prices recovered from early weakness and ended on a firm note on Thursday.
Despite recent data showing a sharp drop in crude stockpiles in the U.S. last week, oil prices were quite sluggish this morning, with traders looking for direction after data showed a rebound in Saudi Arabia’s crude oil exports and news about resumption of production in the Gulf of Mexico.
Surging coronavirus cases and concerns about the outlook for energy demand weighed on the commodity.
However, oil prices climbed higher, reacting to reports about OPEC and its allies’ plan to crack down on countries that failed to comply with output cuts.
The group has reportedly asked Iraq, Nigeria and the UAE to cut more barrels to compensate for excess production in the three months to July.
The OPEC and allies are likely to meet next month in the event of the oil market weakening further
West Texas Intermediate Crude oil futures for October ended up $0.81 or about 2% at $40.97 a barrel, well off the session’s low of $39.42.
Brent crude futures were up by $1.052 or about 2.5% at $43.27 a barrel.
Both OPEC and International Energy Agency had recently cut their forecasts for energy demand this year.