Oil Gains as Saudis Pledge to Extend Cuts, U.S. Supply Draw Seen

(Bloomberg) -- Oil prices climbed as Saudi Arabia predicted that OPEC will extend supply cuts next year and optimistic economic growth prospects boosted U.S. equities.

Futures rose as much as 2.5 percent in New York on Wednesday, halting the deepest three-day slump since 2016. Saudi Energy Minister Khalid Al-Falih said he’s sure a production accord signed earlier this month will be extended in April. Analysts in a Bloomberg survey, meanwhile, predicted a third straight decrease for American crude stockpiles ahead of a government report Wednesday.

Al-Falih is doing all he can “to inject some bullish impact into oil prices,” said Stephen Brennock, an analyst at PVM Oil Associates Ltd. in London.

West Texas Intermediate for January delivery, which expires Wednesday, traded $1.20 higher to $47.44 a barrel at 10:22 a.m. on the New York Mercantile Exchange. Brent for February settlement gained $1.04 to $57.30 on London’s ICE Futures Europe exchange.

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