Oil prices rose on Tuesday, after Saudi Arabia's plans to cut monthly exports in November renewed faith in the major oil producer's efforts to drain global stocks.
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Light, sweet crude for November delivery advanced $1.34, or 2.7%, to $50.92 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, rose 82 cents, or 1.5%, to $56.61 a barrel.
Saudi Arabia's oil ministry said Monday that the kingdom will export 7% less crude by sea in November, compared with the same period last year. The move is part of ongoing efforts by the Organization of the Petroleum Exporting Countries and other producers, including Russia, to stabilize prices by curbing output in a deal which expires in March 2018.
Last week, Saudi King Salman and Russian President Vladimir Putin met in Moscow where discussions included extending the cuts, but no new agreement was struck.
"The Saudis still continue to signal their intention," said Gene McGillian, research manager at Tradition Energy. "This is a sign that they're serious about trying to rebalance the market."
Weekly U.S. oil inventory data, due Wednesday, is expected to show a continued draw in crude stocks. Analysts surveyed by S&P Global Platts expect oil supplies to have fallen by 400,000 barrels in the week ended Oct. 6.
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The damage done by Hurricane Nate this weekend fell short of more severe storms this season such as Harvey and Irma. However, its path through the Gulf of Mexico disrupted oil production as platforms and rigs were evacuated and some operations were halted.
According to the Bureau of Safety and Environmental Enforcement, about 85% of oil production in the Gulf of Mexico was shut in as of Monday, amounting to nearly 1.5 million barrels a day.
Prices rose ahead of a data-heavy week for oil, which traders hope will shed further light on the attempts to ease a global supply glut.
Analysts and traders expect data from the U.S. Energy Information Administration to show a decline in crude stockpiles for the week ended Oct. 6. The amount of gasoline and distillates sitting in storage is also expected to fall. The EIA report is scheduled for release on Thursday.
Investors are also awaiting OPEC's monthly report due Wednesday, followed by the International Energy Agency's monthly report Thursday, for updated supply and demand forecasts.
"The market wants to see it first before it believes it, we're still in October, we haven't seen the October numbers yet," said Giovanni Staunovo, commodity analyst at UBS Wealth Management.
Gasoline futures rose 2.1% to $1.5915 a gallon, and diesel futures added 1.7% to $1.7649 a gallon.
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(END) Dow Jones Newswires
October 10, 2017 15:39 ET (19:39 GMT)