Oil rides longest rising streak in over a month

Bloomberg

Oil rode its longest rising streak in more than a month as a proposal by the world’s two biggest crude producers to extend output curbs into 2018 boosted confidence that other nations will follow suit.
Futures climbed for a fifth day in New York, adding to a 2.1 percent jump after the Saudi and Russian energy ministers said they favor keeping curbs until the end of March. There’s still concern that a surge in US production, together with an increase in Libyan output and signs of recovery in Nigeria, may undercut the Organization of Petroleum Exporting Countries’ strategy to stabilize the market and prop up prices.
“The comments from Saudi Arabia and Russia are driving prices up, but I’m skeptical that crude will see a new level,” Hong Sung Ki, a commodities analyst at Samsung Futures Inc., said by phone in Seoul. “As producers in the US are expected to increase output, prices will continue to be restricted from rising.”
West Texas Intermediate for June delivery climbed 40 cents, or 0.8 percent, to $49.25 a barrel on the New York Mercantile Exchange at 9:23 a.m. in London. The contract rose $1.01 to close at $48.85 on Monday, the highest since April 28. Total volume traded was about 12 percent below the 100-day average.
Brent for July settlement gained 44 cents to $52.26 a barrel on the London-based ICE Futures Europe exchange. The contract added 98 cents, or 1.9 percent, to settle at $51.82 a barrel on Monday. The global benchmark crude traded at a $2.72 premium to July WTI.
US crude stockpiles are forecast to have declined by 2.75 million barrels to 519.8 million barrels in the week ended May 12, according to a Bloomberg survey of analysts. Supplies of gasoline probably dropped 1 million to 240 million barrels while inventories of distillate fuel, a category that includes diesel and heating oil, slipped 1.25 million to 147.5 million barrels last week.