LONDON – Crude prices climbed today on a report from the U.S. Energy Information Administration indicating a surprising decline in U.S. crude stocks. EIA statistics showed crude supplies had dropped 2.4 million barrels to 309.1 million in the week to December 7, contradicting American Petroleum Institute (API) figures on Tuesday reporting a 270,000 barrel build.
While the Organization of Petroleum Exporting Countries continues to seek support ffrom non-member producers in a global production cut, non-OPEC countries have yet to meet the target, with all eyes now on Norway after pledges from Russia, Mexico and Oman. OPEC has said it wants combined cuts to last for six months from January 1, but OPEC Secretary-General Ali Rodriguez on Tuesday signaled flexibility on the deal, saying planned reductions did not have to be fixed for six months. Russia has already indicated it may not maintain the output reduction for that length of time. Analysts said OPEC’s willingness to be flexible could result in a deal being reached this week.
