Futures were little changed in New York. Prices jumped 2.1 percent Monday after energy ministers from Saudi Arabia and Russia said they favor prolonging crude-output cuts by global producers through the first quarter of 2018. U.S. crude stockpiles probably fell by 2.75 million barrels last week, according to a Bloomberg survey before a government report Wednesday.
The largest of the 24 producers that agreed to cut supply for six months are reaffirming their commitment to the deal amid growing doubts about its effectiveness so far. Still, an increase in Libyan output, together with a surge in U.S. production and signs of recovery in Nigeria, may undercut the Organization of Petroleum Exporting Countries’ strategy to re-balance the market.
West Texas Intermediate for June delivery climbed 4 cents to $48.89 a barrel on the New York Mercantile Exchange at 8:28 a.m. in Tokyo. The contract rose $1.01 to close at $48.85 a barrel on Monday, the highest since April 28. Total volume traded was about 58 percent below the 100-day average.
Brent for July settlement added 98 cents, or 1.9 percent, to settle at $51.82 a barrel on the London-based ICE Futures Europe exchange on Monday. The global benchmark crude ended the session at a $2.66 premium to July WTI.