Investing.com – Crude oil prices settled higher on Monday after oil production platforms in the Gulf of Mexican began returning to service as Storm Nate had little impact on oil infrastructure while bullish comments from Opec lifted sentiment.
On the New York Mercantile Exchange crude futures for November delivery rose 29 cents to settle at $49.58 a barrel, while on London's Intercontinental Exchange, Brent gained 22 cents to trade at $55.84 a barrel.
In what was a volatile session, oil prices made a positive start to the week as oil infrastructure shut down in the Gulf of Mexico in preparation for Hurricane Nate started returning to service as Hurricane Nate weakened and moved inland.
More than 90% percent of crude oil production capacity in the Gulf of Mexico was shut in, the Bureau of Safety and Environmental Enforcement said on Sunday.
Meanwhile, Opec Secretary-General Mohammad Barkindo stoked expectations of an extension to the output-cut agreement deal beyond the March 2018 deadline, assuring market participants that talks concerning a possible extension were underway.
The Organization of the Petroleum Exporting Countries is due to meet in Vienna on Nov. 30, when it will discuss the impact of its global deal to rein in output.
Oil prices have come under pressure, dropping below $50 a barrel, as investors questioned whether the recent rally has been justified.
“There appears to be growing doubt among market participants as to whether the price rise of recent weeks is justified,” said Commerzbank (DE:CBKG) analysts in a recent note. ”Among other things, this was due to the possible extension of the production cuts until the end of 2018.”
A monthly report from both Opec and the International Energy Agency (IEA) later in the week, however, is expected to provide traders with fresh insight into global demand and supply in oil markets.