INTERNATIONAL – Oil rose above $50 a barrel in New York, erasing an earlier loss, after a report that Russia accepts the need to cut production in conjunction with OPEC.
Putin praised Saudi Crown Prince Mohammed Bin Salman on Wednesday and said Moscow is ready to cooperate further. He also said crude around $60 a barrel is “balanced and fair” and well above the level needed to to keep his government’s budget in surplus.
In the U.S., crude stockpiles rose by 3.58 million barrels last week in the longest run of gains since November 2015, according to the Energy information Administration. The build was higher than the 1-million-barrel gain predicted in a Bloomberg survey, overshadowing a surprise draw in gasoline inventories.
Oil-market news WTI’s 14-day Relative Strength Index indicates the U.S. marker has traded in oversold territory every day so far this month. Shale explorers will likely cut spending budgets next year for the first time since the last price crash as crude spirals down again, analysts said. Alberta is working to buy rail cars to help ship more crude as pipeline bottlenecks have the oil-rich province grappling with historic low prices.