Al-Falih's bullish remarks underpin oil prices
Crude rallied further on Wednesday as markets absorbed comments from Saudi Arabia's energy minister Khalid al-Falih, who expressed belief imbalances between supply and demand are ending. He even said investors should ramp up project development to neutralize the potential for a shortage in exploitation of the commodity.
In remarks at the Oil and Money conference in London, Al-Falih signaled countries which don't belong to the Organization of the Petroleum Exporting Countries need to respond accordingly to the cartel's upcoming agreement on production quotas to support prices. He noted a global deal would add to stability together with the end of the current downturn in the market cycle, and praised indications from non-OPEC states about the willingness to participate. Saudi Arabia has been intensifying its communication with Russia this year on initiatives to curb output.
WTI crude for settlement in December rose 1.48% to $51.37 per barrel at ICE Futures Europe. Brent for delivery in the same month added 1.52% to change hands for $52.47 for one barrel, just four cents under the daily high (both 11:37 a.m. CET).