Crude is firm on anticipated OPEC cut extension

Crude is firm on anticipated OPEC cut extension

On Wednesday, crude rallied after a reported dive in American crude inventories and also on hopes that an OPEC-led output cut aimed at tightening the crude market is going to be extended beyond next March.

Brent crude futures showed a reading of $63.07 a barrel, rising 0.8% from their previous close.

American West Texas Intermediate crude futures hit $57.74 a barrel, soaring 1.6%.

Market participants told financial markets have been underpinned by a recent effort led by the Organization of the Petroleum Exporting Countries to limit crude output in an attempt to tame a global supply overhang.

The deal to restrict output will expire in March next year, although OPEC will have a meeting on November 30 in Vienna just to discuss the outlook for the further policy.

Traders don’t doubt that the meeting's outcome is going to determine crude prices' near-term fate.

Additionally, crude markets were being suppressed by ascending output in America, which has rallied by nearly 15% since mid-2016 to about 9.65 million barrels a day.

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