Oil Holds Above $60 as U.S. Crude Stockpiles Seen Shrinking - Bloomberg

Oil Holds Above $60 as U.S. Crude Stockpiles Seen Shrinking - Bloomberg:

Oil held above $60 a barrel before U.S. government data forecast to show that crude stockpiles declined again, mitigating concerns that global markets face a renewed surplus next year.

Futures were steady for a second day in New York. American crude inventories fell by 1.7 million barrels last week, according to a Bloomberg survey before Energy Information Administration data on Friday and industry figures due later Tuesday. Iraq, one of the biggest over-producers in the OPEC deal, pared output this month amid growing pressure to implement its share of cutbacks, according to tanker-tracker Petro-Logistics SA.

Oil is on course for the best month since January after the U.S. and China made a breakthrough on an initial trade deal and the Organization of Petroleum Exporting Countries and its partners agreed to deepen output cuts. American crude inventories are coming off their highs even as the nation pumps near-record levels and shale explorers revive drilling. 

“The latest OPEC+ agreement appears to have boosted sentiment,” analysts at consultants JBC Energy GmbH in Vienna said in a report.