West Texas Intermediate (WTI) crude oil futures for delivery in February were 0.4% higher at $54.15 per barrel during Wednesday’s pre-market trading session, while Brent crude futures for delivery in the same month were also up 0.4% at $56.43 per barrel.
Oil markets are generally adhering to a mildly optimistic view of crude prices in 2017, in the wake of plans by oil-producing nations to reduce global supply. In the last two years, crude output has exceeded consumption, driving down prices as oil-producers sought storage tanks.
But as of next year, members of the Organization of the Petroleum Exporting Countries (OPEC) and 11 other non-cartel producers have said will start reducing output, The stated goal is to limit production by 1.8 million barrels per day from a baseline, thereby restoring supply and demand somewhat to balance. Tighter supplies should help lift crude prices.