20.07.201708:08:00UTC+00Crude Oil Rally In Full Swing

Crude oil futures continued to rise Thursday morning, extending 6-week highs on signs that Saudi Arabia will compel Libya and Nigeria to cut production.

The two African nations have been exempt from OPEC's supply quota plan until now. Robust production, particularly from Libya, has helped to offset OPEC's supply reductions.

Meanwhile, there are signs that U.S. output is slowing. Oil inventories have tumbled from record highs, while the domestic rig count has levelled off following 23 consecutive weekly increases.

Domestic crude supplies fell by 4.7 million barrels for the week ended July 14, the Energy Information Administration said yesterday. Gasoline stockpiles also fell by 4.4 million barrels, while distillate stockpiles declined by 2.1 million barrels last week.

WTI light sweet crude oil was up 28 cents at $47.40 a barrel, having rebounded in Julu from a yearly low near $42.