MTECHTIPS;-Oil prices rise in anticipation of tighter 2017 market

MTECHTIPS;-Oil prices rise in anticipation of tighter 2017 market

MTECHTIPS- Oil prices rose on Monday in anticipation of tighter crude supply going into 2017 following the decision by OPEC and other producers to cut output to prop up prices. Brent crude futures, the international benchmark for oil prices, were trading at $55.41 per barrel at 0756 GMT, up 20 cents from their last close. U.S. West Texas Intermediate (WTI) crude oil futures were up 31 cents at $52.21 a barrel. Traders said the higher prices in front-month crude futures were due to expectations of a tighter market. The Organization of the Petroleum Exporting Countries (OPEC) and other producers led by Russia have announced cutbacks of almost 1.8 million barrels per day (bpd) in oil production from January 2017 in an effort to bolster prices to reduce rampant global overproduction which has seen output outstrip consumption for over two years. “With investors now expecting a relatively high level of compliance with the production cut agreements, prices should be well supported,” ANZ bank said on Monday.f

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