Oil held its gains above $50 a barrel after US inventories fell a fifth consecutive week and as Opec’s pledge to reduce output sparked speculation a global glut may ease. Futures were little changed in New York after advancing 1.2 percent Thursday to close above $50 a barrel for the first time since June. US crude stockpiles shrank below 500 million barrels last week for the first time since January, government data showed. Opec pledged in Algiers last week to reduce the group’s production to 32.5 million to 33 million barrels a day in a bid to shrink the world’s bloated crude supplies and boost prices. US crude inventories dropped by 2.98 million barrels to 499.7 million barrels, the Energy Information Administration reported Wednesday.

Source: The Standard October 07, 2016 15:22 UTC