Crude reaches 2-year maximum

On Monday, crude started the week on a positive note, underpinned by hopes that crude producers will decide to extend an output cut at their gathering at the end of November.

According to the original terms of the deal, OPEC along with 10 other non-OPEC producers led by Russia decided to reduce output by nearly 1.8 million barrels a day for up to six months. In May 2017 they extended the agreement for a period of nine months until March 2018 for the purpose of reducing global crude inventories and underpin crude prices.

Discussions will last till the November 30 meeting, where crude ministers from OPEC and also the participating non-OPEC producers will be present.

Crude prices obtained another boost because a sizable weekly sag in active American crude rigs to the lowest reading since May drove expectations for a slowdown in domestic crude output surge.

Oilfield services company Baker Hughes informed that the overall number of active American rigs drilling for oil went down by eight to 729 the previous week.

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