Oil prices edge up on hopes global supplies will tighten | Reuters

Oil prices edge up on hopes global supplies will tighten | Reuters:

Oil prices climbed 1 percent on Thursday, after data showed inventory declines in the United States and as investors began to expect that the global oil market could have a deficit sooner than they had previously thought.

OPEC’s output agreement with Russia and Canada’s decision to mandate production cuts could create an oil market supply deficit by the second quarter of next year, if top producers stick to the deal, the International Energy Agency said in its monthly Oil Market Report. [IEA/M]

U.S. crude inventories at Cushing, Oklahoma, the delivery point for U.S. crude futures, fell by nearly 822,000 barrels in the week through Dec. 11, traders said, citing data from market intelligence firm Genscape.

Brent crude LCOc1 was up 57 cents, or 1 percent, at $60.72 per barrel by 12:02 p.m. EST (1702 GMT). U.S. light crude CLc1 was 79 cents higher, or 1.5 percent, at $51.94 a barrel.