Oil is making a comeback following chatter OPEC could extend its production cut
West Texas Intermediate crude oil is making a comeback after Saudi oil minister Khalid Al-Falih suggested major oil producers could extend their agreed upon cuts.
The energy component trades up 0.9% at $51.31 a barrel after tumbling 4% on Wednesday. A smaller than expected drawdown in oil inventories and the first jump in gasoline supplies in several months had WTI threatening to break below the $50 level for the first time since April 4.
"There is an initial agreement that we might be obligated to extend to get to our target," Al-Falih told attendees at a conference in Abu Dabi, according to Bloomberg.
The production cuts are scheduled to end in June, but some members have expressed support to extend them in an effort to support prices and ease fiscal burdens.
Brent crude oil, the international benchmark, is higher by 1% at $53.48 a barrel.