The Brent International Standard rose 55 cents to $ 63.16 a barrel as of 08:23 AM ET, its highest level since August 1. WTI crude futures rose 56 cents, or 1.0%, to $ 58.42 a barrel, its highest since July 31.
Prices were on track for a fifth day of earnings after Saudi Arabia’s new energy minister reiterated a commitment to cut production from the OPEC + group comprised of the Organization of Petroleum Exporting Countries and non-member countries including Russia.
Oil prices rose to their highest levels in six weeks on Tuesday, bolstered by hopes that OPEC and its allies could agree to extend a deal to curb production in order to support prices.
PVM oil brokerage Tamas Varga said “The kingdom wants higher oil prices … Prince Abdulaziz made it clear there was no” radical “change in Saudi policy”.
Prince Abdulaziz bin Salman said the kingdom’s policy would not change and a global agreement to cut oil production by 1.2 million barrels a day. He added that the alliance would be created in the long run.
“It will be interesting to see if we get any remarks from him if the producer group in general and Saudi Arabia in particular sees the need for deeper cuts in production.”
The OPEC + Joint Ministerial Monitoring Committee, which reports on the compliance of the cuts, will meet in Abu Dhabi on Thursday.
There were concerns about adherence to the manufacturers in the deal after OPEC members Iraq and Nigeria, among others, exceeded their quota in August and Russia also did not fully respect it.
Jeffrey Halley, senior market analyst at OANDA, said that “Markets will need to see concrete progress on the production front, even as the world economy slows, to keep profits.”
The United States Information Administration’s report on crude oil inventories will be released on Wednesday.