Oil futures settled higher Thursday, as the OPEC plan to scale back production lifted prices for West Texas Intermediate crude to their highest level in more than a month. The Organization of the Petroleum Exporting Countries reached an understanding at a meeting Wednesday in Algeria that there was a need to scale back production. OPEC members agreed on a preliminary outline to cut its collective output to between 32.5 million barrels a day and 33 million barrels a day, down from the levels of 33.2 million barrels a day in August, national oil ministers said. The cartel hasn’t approved a production cut since 2008.
That was “definitely a bullish move for oil prices in the short-term outlook as, above all, it shows unity among oil producing nations once again,” said Fawad Razaqzada, technical analyst at Forex.com. “However, it is important to note that the OPEC output will still remain near record high levels and there is scope for some members to ignore the production cap.”