West Texas Intermediate traded near the highest price in almost two weeks after OPEC’s secretary general said the group may cut crude-output targets next year. Brent was steady in London.
Futures were little changed in New York after advancing 2.1 percent yesterday. The Organization of Petroleum Exporting Countries’ daily output target may fall by 500,000 barrels to 29.5 million barrels in 2015, Abdalla El-Badri said at OPEC’s secretariat in Vienna. In the U.S., the top general said he would support sending advisers to accompany Iraq troops into battle against Islamic State if necessary.
“Cutting output makes sense,” Jonathan Barratt, the chief investment officer at Ayers Alliance Securities in Sydney, said by phone. “OPEC members will probably remove the spare capacity and tighten the market over the next three to four months. We’ve already seen Saudi Arabia do it.”