2019.12.2619:20:00UTC+00Oil Futures Settle Notably Higher Again

Crude oil prices rose on Thursday, extending gains to a third straight session amid easing concerns about the outlook for energy demand, the OPEC-led output cuts and on data showing a drop in U.S. crude inventories.

West Texas Intermediate crude oil futures for February ended up $0.57, or about 0.9%, at $61.68 a barrel.

On Tuesday, WTI crude oil futures ended up $0.59, or 1%, at $61.11 a barrel.

Brent crude futures were gaining about $0.70, or 1%, at $67.90 around late afternoon.

Worries about outlook for energy demand have eased a bit following the U.S. and China agreeing on a phase 1 trade deal. U.S. President Donald Trump said earlier this week that he and Chinese President Xi Jinping would have signing ceremony for the agreement to end their ongoing trade dispute.

A report released by the American Petroleum Institute on Tuesday evening showed U.S. crude stockpiles declined by 7.9 million barrels last week. That was significantly higher than what was forecast by analysts.

As reported earlier, the OPEC and allies will extend and deepen production cuts that would reduce output by more than 2 million barrels per day from January.

The official crude inventory data for the week ended December 20 will be released by the Energy Information Administration on Friday morning.