Crude oil futures settled at their highest since August on Tuesday, with gains fueled by a weaker dollar and bullish comments from a top OPEC official.
The OPEC cartel is apparently winning its price war with non-OPEC producers, remarks from OPEC secretary-general Abdalla Salem el-Badri indicated.
Because U.S. and Canadian companies are abandoning projects, there will be “less supply in the very near future. Less supply means high prices,” he said.
Meanwhile, Russia is in favor of holding talks to put a floor under oil prices, it was reported.
WTI crude oil for November surged up $2.27, or 4.9%, to settle at $48.53/bbl on Nymex.
The American Petroleum Institute will release its estimates of U.S. crude inventories late Tuesday, followed by data from the U.S. Department of Energy on Wednesday.
The material has been provided by InstaForex Company – www.instaforex.com