By: Mahmoud Gamal
Mubasher: Oil prices exceeded its highest level in 17 months on Wednesday, while OPEC producers showing commitment towards production cut agreement.
By 03:50 GMT, Brent crude oil futures rose 0.27% or 16 cents to $55.5 per barrel, while West Texas Intermediate (WTI) increased 0.36% or 19 cents to $51.90 per barrel.
Traders are seeking to offset the annual losses, with OPEC producers showing commitment towards production cut agreement, adding to the initial figures showing the rise of US crude inventories in Today's session, technical analyst, Ahmed Karam, told Mubashe
Iraq’s state-owned oil marketing company SOMO announced on Tuesday that Iraq will commit to OPEC's production cut agreement.
On 30 November, OPEC agreed to cut its own production by 1.2 million barrels daily as of next January, while Russia and Non-OPEC producers agreed on reducing the production by half.
US oil inventories declined by 4.15 million barrels last week, while expectations said they will fall by 2.4 million barrels, according to the data released by the American Petroleum Institute (API) on Tuesday.
Markets are anticipating the US Department of Energy's report, which is scheduled to be released today, that is expected to show a decrease in the US weekly crude inventories by around 2.51 million barrels.
Translated by: Sara Ghali
