Crude staged a mild rebound to end higher in the U.S. on Monday on statements from key producers that a deal to curb output could be extended into next year. On London’s Intercontinental Exchange, Brent crude futures rose 0.49% to $49.34 a barrel. On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude gained 0.45% to $46.43 a barrel.
Naeem Aslam, chief market analyst for ThinkMarkets, said in a note to clients that the market has started to tune out the output cut effort. “The rebalancing is not seen as enough to change the demand and supply picture by margins that would support a continued rally,” Aslam said. Indeed, the overnight gains were tepid, underscoring market doubts that a big enough dent in global inventories could be made while countries outside the pact led by the United States ramp up output and continue to show few signs of a mssive demand surge.