Oil continues to rise

Oil futures rose about 1.5 percent, extending the previous session's rally, which was caused by the news of an agreement by OPEC to curb oil production.

OPEC participants after six-hour talks said on the achievement of mutual understanding, but work on the details of reduction plan had been postponed until November. According to the source, OPCE will set up a committee that will determine how much each country will reduce. Production will be limited to the level of 32.50 mln barrels per day compared to the current 33.24 million barrels of oil per day. Once the new production ceiling is reached, OPEC made a proposal of cooperation to non-OPEC producers.

However, despite the positive outcome of the OPEC meeting, investors are not convinced that the terms of the agreement will be respected. The market is also questioned the adequacy of the current OPEC influence, given the high supply of oil from countries not members of the cartel.

In addition, the dynamics of trade have continued to influenced by yesterday's mixed data from the US Department of Energy, which showed that oil inventories unexpectedly declined, but gasoline inventories rose. Recall, for the week September 17-23, oil reserves fell by 1.9 mln barrels to 502.7 million barrels. The experts predicted an increase of 3.0 million barrels. Gasoline inventories rose by 2 million barrels to 227.2 million barrels.

The cost of the November futures for US light crude oil WTI (Light Sweet Crude Oil) fell to 47.82 dollars per barrel on the New York Mercantile Exchange.

November futures price for North Sea petroleum mix of mark Brent fell to 49.95 dollars a barrel on the London Stock Exchange ICE Futures Europe.