|Published : 21 Mar 2017, 12:00:43|
Oil prices rise on OPEC deal extension hopes
Oil prices rose early on Tuesday on expectations that an OPEC-led production cut to prop up the market could be extended, and as strong demand was seen to slowly erode a global fuel supply overhang.
Prices for front-month Brent crude futures, the international benchmark for oil, were at $51.76 per barrel at 0043 GMT, up 14 cents, or 0.3 per cent, from their last close.
US West Texas Intermediate (WTI) crude futures were up 6 cents, or 0.1 per cent, at $48.28 a barrel.
The OPEC and non-OPEC producers have pledged to cut its output by almost 1.8 million barrels per day (bpd) between January and June in an effort to prop up prices and rein in a global supply glut.
Traders said that healthy oil demand would help rebalance markets and support prices.
The Brent futures forward curve currently shows a slight contango shape, in which prices for May delivery are 62 cents below those for delivery in January 2018, according to Reuters.