(Bloomberg) -- Crude oil held onto gains after an industry report showed exopanding U.S. inventories as OPEC and allied oil producers mull deepening supply cuts.
Futures settled 1.6% higher in New York on Tuesday before the American Petroleum Institute disclosed a 4.45 million-barrel increase in crude inventories, according to people familiar with the data. If confirmed by a government tally on Wednesday, it will be the longest run of gains in almost a year.
Prices rose earlier after Reuters reporter that members of the Organization of Petroleum Exporting Countries are concerned about the outlook for demand next year.
“The biggest piece of news is that OPEC is considering deeper cuts,” said Josh Graves, senior market strategist at RJ O’Brien & Associates in Chicago.“I think that’s something that needs to be done.”
U.S. benchmark futures have been under pressure for the past six months as the protracted U.S.-China trade war imperiled worldwide energy demand. President Donald Trump on Monday said negotiations are progressing, raising expectations that the world’s largest economies may sign a deal as soon as next month.
West Texas Intermediate crude for November delivery, which expired Tuesday, rose 85 cents to settle at $54.16 a barrel on the New York Mercantile Exchange. The more active December contract rose 81 cents to $54.32 at 4:59 p.m.
Brent for December settlement increased 74 cents to close at $59.70 on the London-based ICE Futures Europe Exchange. The global benchmark crude traded at a premium of $5.22 to WTI for the same month as of the close.
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