Crude rallies as Saudi Arabia considers extending supply cut

On Monday, crude grew after the Saudi oil minister discussed extending a pact to reduce global crude supplies beyond March 2018 with his Kazakh and Venezuelan counterparts.

News of Sunday’s negotiations helped to compensate downward pressure on crude prices amid concerns that energy demand would be affected heavily by Hurricane Irma as well as its aftermath.

October delivery American crude futures grew 0.8% trading at $47.87, having sunk 3.3% on Friday.

November delivery London Brent crude futures soared 0.4% hitting $54, having preciously decreased 1.3%.

Hurricane Harvey brought the American refinery use rate to a seven-year minimum, but mostly spared crude as well as petrochemical plants along the US Gulf Coast from considerable damage. After a series of shutdowns some units are currently resuming their output.

OPEC along with other crude producers have decided to diminish crude output by nearly 1.8 million barrels a day through the end of next March for the purpose of reducing global crude inventories and backing crude prices.