OPEC’s proposed deal to cut production has “put a floor” under the oil price at around $50 a barrel, Reuters reports.
International benchmark Brent crude dropped to a little above $52 from nearly two per cent gain of $52.67 last night.
West Texas Intermediate, hit a year-high of close to $52 at one point last night and was holding above $51 a barrel this morning.
Optimism is growing for future trading, too, BMI Research says it sees “significant potential for an upwards break in Brent towards $60 per barrel”.
BMI Research argues this is down to “bullish technical drivers and supportive conditions in the broader financial markets”.
In addition to ongoing speculation that OPEC will also confirm its tentative supply deal when it meets formally next month, markets are buoyed by official data showing raw crude stockpiles in the US has fallen for the sixth time in seven weeks.