Crude Trades Near $57 As Nigerian Oil Workers Suspend Strike

Oil traded near $57 a barrel for a third day before data expected to show that surplus crude inventories in the U.S. continued to diminish as global markets re-balance.
Futures rose 0.5 percent in New York after slipping 0.2 percent on Monday. Inventories probably lost 3 million barrels last week, according to a Bloomberg survey before Energy Information Administration data Wednesday.
Nigerian oil workers suspended strike action and agreed to continue talks next month, while output from a Libyan field returned to normal after a power outage.
Oil has rallied the past three months as the Organization of Petroleum Exporting Countries (OPEC) and its allies reduce supply to drain a global glut. The unprecedented cooperation among producers, which has now been extended until the end of 2018, has crude prices on their way to a second annual advance.
“As long as the agreement between Saudi Arabia and Russia holds to curb production, oil prices will stay in the region of $60,” Paolo Scaroni, vice-chairman of NM Rothschild & Sons and former chief executive officer of Eni SpA, said in a Bloomberg television interview today
“Oil prices are also OK for the shale-oil producers, which need a price of around $60 if they want to make some money. In total, the situation is stable,” he said.
West Texas Intermediate for January delivery, which expires today, added 31 cents to $57.47 a barrel on the New York Mercantile Exchange. Total volume traded was about 46 percent below the 100-day average. The more-active February futures rose 30 cents to $57.52 at 9:41 a.m. in London.
Brent for February settlement rose 19 cents to $63.60 a barrel on the London-based ICE Futures Europe exchange after rising 0.3 percent on Monday. The global benchmark traded at a premium of $6.05 to February WTI.

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