Oil closed at its highest in more than two years for a second day as support grew for OPEC to prolong output cuts, while supply threats abounded, Bloomberg reports.
Futures jumped 2 percent in New York, closing above $55 a barrel for the first time since July 2015. While resumption of attacks by Nigerian militants and Venezuela’s debt woes imperil crude output from two of the world’s chief suppliers, the overarching bullish factor remained the increasing prospects for an extension of the OPEC-led curbs to be decided as early as this month. In the U.S., oil rigs declined by the most in more than a year, and WTI surpassing Thursday’s intraday high also provided upward momentum later in the session.
West Texas Intermediate for December delivery advanced $1.10 to settle at $55.64 a barrel on the New York Mercantile Exchange and climbed for a fourth week. Total volume traded was about 13 percent below the 100-day average. Brent for January settlement added $1.45 to end the session at $62.07 on the London-based ICE Futures Europe exchange. The global benchmark traded at a premium of $6.21 to January WTI.