WTI Oil Ends Higher as Talk of OPEC Cuts Re-Emerge — Market Talk

US crude futures finish 3% higher at $70.10 a barrel, the largest one-day gain since May 5 as the market flips back to the possibility that the OPEC-plus group will announce more production cuts when it meets starting this weekend. “The fact that the market is ignoring the surprise buildup in inventories [in weekly EIA data out earlier] suggests traders may be focusing on a surprise from OPEC,” says Peter Cardillo at Spartan Capital, in an email. “In other words, a small production cut may be forthcoming.” The shift in sentiment is partly due to an ISM manufacturing report that showed US factory activity contracted for a seventh straight month, which signals oil demand weakness will persist.