Crude oil futures resumed their rally on Tuesday despite ratings agency warnings that the recent rally will run out of steam and Goldman Sachs keeping its $45-50/barrel outlook through mid-2017. Though, the hopes were dim for an agreement of an output freeze at an informal OPEC meeting next month but Iran was sending positive signals that it may support joint OPEC action to prop up the market. If OPEC and some other producers agree to cap output at informal talks next month, the resulting price boost may help other suppliers revive output. Crude pared some gains on trade data showing a surprise build in US crude stocks.
Benchmark crude oil futures for October delivery ended up by $0.69 or 1.5 percent to close at $48.10 a barrel after trading in a range of $47.69 and $48.20 a barrel on the New York Mercantile Exchange. In London, Brent oil futures for October delivery gained $0.80 or 1.6 percent to $49.96 a barrel on the ICE.