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Oil prices edged up, buoyed by increasing confidence that OPEC and other exporters would agree to reduce output at certain level for the rest of the year and extend into the first quarter of the following year.
Benchmark Brent crude oil rose by 40 cents per barrel, trading at $54.55. Meanwhile, U.S. WTI rose by 35 cents from their last close, trading at $51.82 per barrel.
Both benchmarks have risen by over 10 percent from their lowest levels this month which went below the $50 per barrel mark. The contracts rebounded on a consensus that OPEC and other producers will continue to implement limits on oil production in its bid to soak up a global oversupply and shore up prices.
OPEC has pledged to reduce supplies by 1.8 million bpd until the end of June and is highly anticipated by markets to decide to prolong the said cut by nine more months until March 2018.
BMI research said that OPEC-initiated production cuts would only lead to a balanced market this 2017, but cuts from 2018 onward would bring it back to oversupply, but at a lower level than 2013-2016.
