© Reuters. Crude prices remain supported on overall optimism© Reuters. Crude prices remain supported on overall optimism

Investing.com – Crude oil prices bounced higher on Thursday, erasing earlier losses as optimism that the market is rebalancing resurfaced in holiday-thinned trade.

The U.S. West Texas Intermediate January contract was up 18 cents or about 0.31% at $58.20 a barrel by 09:50 a.m. ET (13:50 GMT), its highest since July 2015.

Elsewhere, for January delivery on the ICE Futures Exchange in London was steady at $63.29 a barrel.

Trade volumes were expected to remain light on Thursday, with U.S. markets closed for the Thanksgiving holiday.

Crude prices climbed after after the EIA reported on Wednesday that xrude oil inventories fell by last week, marking the first decline in three weeks. That was compared with analysts’ expectations for a decline of 1.5 million barrels.

Prices received additional support from growing signals that the Organization of Petroleum Exporting Countries (OPEC) and its allies will agree to prolong supply curbs beyond March when producers meet in Vienna next week.

Top crude exporter Saudi Arabia is lobbying oil ministers to agree on a nine-month extension to OPEC-led supply cuts, sources familiar with the matter said, as Riyadh seeks to ensure a price-sapping glut is eradicated.

OPEC, together with a group of non-OPEC producers led by Russia, has been restraining output since the start of this year in a bid to end a global supply overhang and prop up prices.

The deal to curb output is due to expire in March 2018, but OPEC will meet on Nov. 30 to discuss the outlook for the policy.

Elsewhere, were up 0.37% at $1.773 a gallon, while lost 1.45% to $2.925 per million British thermal units.

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