Crude oil higher as winter demand season approaches

Crude oil prices were higher on Thursday as the winter demand season approaches and natural gas inventories dropped more than had been anticipated. In addition, more and more signs point to another production cut by the Organization of Petroleum Exporting Countries before the end of the year. However most traders are said to be waiting to see how much of an effect the current OPEC cut will have on supply and prices.

There is some worry that non-OPEC oil producers could find it difficult to make up for OPEC’s reduced output. Norway’s production, for example, was down by 12.3 percent year on year in September and data indicates that the weak output continued into October.

December contracts for Brent crude added $1.29 to $60.87 per barrel in London, while West Texas Intermediate crude for December delivery gained 92 cents to $60.75 per barrel.

Natural gas prices were higher as well after new figures showed that the US stockpile dropped by 7 billion cubic feet, much more than the 4 billion cubic feet decline that had been expected for last week. Nymex Henry Hub added 30 cents to $8.12 per million British thermal units.