Crude oil futures climbed higher on Tuesday as investors bid up futures contracts on the heels of growing optimism about compliance with OPEC’s global pact to curb production, according to Bloomberg MarketWatch.
On the New York Mercantile Exchange, April West Texas Intermediate gained 55 cents, or 1%, to settle at 54.33 a barrel while the March contract, which expired Tuesday, settled up 66 cents, or 1.2%, to end trading at $54.06.
On London’s ICE Futures Exchange, April Brent crude advanced 48 cents, or 0.9%, to settle at $56.66 a barrel.
“Our objective is to restore stability in the market. How? By addressing the variable of stocks that have built up as a result of supply-driven forces,” said Mohammad Sanusi Barkindo, OPEC’s Secretary-General.
Late last year, OPEC agreed to cut production in a bid to balance the market and reduce high global supplies. The U.S. isn’t part of the global agreement; however, there are concerns that a resurging domestic market could destabilize prices and upend the pact.
Barkindo will meet with domestic shale oil producers at an energy conference in Houston next month.
Meanwhile, March natural gas lost 27 cents, or 9.5%, to settle at $2.5640 per million British thermal units, marking its lowest settlement since August 11, 2016. Unseasonably warm weather has hurt the futures price for this commodity.