Mubasher: Oil prices maintained its gains at the close of Tuesday’s trade, as American crude reached its highest level since 29 September.
The oil market was revived by the recent remarks made by Mohammad Sanusi Barkindo, the secretary general of the Organization of the Petroleum Exporting Countries (OPEC), who said that there are positives indicators pointing to a market rebalance after data showed a decrease in output, after the rising fears of an over supply glut.
Barkindo has called upon the United States to cut shale oil production, as part of the efforts to reduce oil supplies.
Nymex futures surged 2.7%, closing at $50.85 per barrel, after exceeding the level of $51 during today's trade.
The American Petroleum Institute (API) is set to reveal initial data on US oil stocks, and then the Energy Information Administration (EIA) will announce the official data tomorrow.
Investors are also anticipating the monthly report which will be issued by OPEC on Wednesday, with expectations of a rise in production by member countries during September.
