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US crude closes at nearly three-months high

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The United States crude closed at nearly a three-month high after a new U S forecast showed tighter oil supplies next year, while Russia, Saudi Arabia and other big producers hinted at further talks to support the market.
Global crude benchmark Brent returned to above $US50 a barrel yesterday, breaking range-bound trades since early September that have largely seen the market trade in a $U5 band.
A weakening dollar added support for oil, as did bets that the U.S. oil rig count could tumble again this week after last week’s unexpectedly sharp decline of 26 rigs.
U.S. crude closed at nearly a three-month high after a new U.S. forecast showed tighter oil supplies next year, while Russia, Saudi Arabia and other big producers hinted at further talks to support the market.
Global crude benchmark Brent returned to above $50 a barrel, breaking range-bound trades since early September that have largely seen the market trade in a $5 band.
A weakening dollar added support for oil, as did bets that the U.S. oil rig count could tumble again this week after last week’s unexpectedly sharp decline of 26 rigs.
“We have reduced the probability of a return to the $37-38 area per nearby WTI,” said Jim Ritterbusch of oil consultancy Ritterbusch & Associates in North Wabash, Chicago. “We will maintain a long standing view that price declines below this support level are virtually off of the table.”
Global oil demand will grow by the most in six years in 2016 while non-OPEC supply stalls, according to a monthly U.S. energy report that suggests a surplus of crude is easing more quickly than expected.
Total world supply is expected to rise to 95.98 million barrels a day in 2016, 0.1 percent less than forecast last month, the U.S. Energy Information Administration said in its Short-Term Energy Outlook.
Demand is expected to rise 270,00 bpd to 95.2 million barrels a day, up 0.3 percent from September’s forecast due in part to an outlook for stronger demand growth from China.
Russia’s energy minister said Russia and Saudi Arabia had discussed the oil market in a meeting last week and would continue to consult each other.
“The market is possibly moving on speculation that OPEC and non-OPEC countries will find an agreement to cooperate,” said Carsten Fritsch, senior oil analyst at Commerzbank in Frankfurt.
Secretary-general Abdullah al-Badri said at a conference in London that OPEC and non-OPEC members should work together to reduce the global supply glut.–CNBC