Oil extends longest run of gains since August before OPEC cuts

Oil extended the longest winning streak in more than four months before Organisation of Petroleum Exporting Countries (OPEC) and other producing nations start reducing output to stabilise the market. Futures advanced as much as 0.6 per cent in New York, climbing for a seventh session. Prices are set to recover next year as supply cuts help to re-balance an oversupplied market, Saudi Arabia’s Energy Minister Khalid Al-Falih said last week. OPEC and 11 nations from outside of the group including Russia have agreed to trim about 1.8 million barrels a day from January. Oil has traded near $50 a barrel since the OPEC agreed last month to curb production for the first time in eight years. Iraq is fully committed to the OPEC accord, Oil Minister Jabbar Al-Luaibi said Thursday in Cairo at a meeting of the Organisation of Arab Petroleum Exporting Countries. West Texas Intermediate for February delivery rose as much as 32 cents to $53.34 a barrel from Friday’s close on the New York Mercantile Exchange and traded at $53.21 at 7:56 am in Hong Kong. There was no settlement Monday because of the Christmas holiday, so all transactions are booked Tuesday. Total volume traded was about 85 per cent below the 100-day average. Prices are up 44 per cent this year. Brent for February settlement gained 11 cents, or 0.2 per cent, to $55.16 a barrel on the London-based ICE Futures Europe exchange on Friday. The global benchmark crude ended the session at a premium of $2.14 to WTI. (Ben Sharples/Bloomberg)