Futures Movers: U.S. oil falls from 3 ½-year high as OPEC, non-OPEC ministers gather in Saudi Arabia

Oil futures continued to gain Thursday, hovering at 3½-year highs after a surprise drop in U.S. supplies, and as investors expect a meeting of major oil producers to confirm strong compliance with their production-cut agreement.

The combination of strong U.S. product demand, strong refining runs, and the ongoing” Organization of the Petroleum Exporting Countries-led output-cut agreement continue to trigger stronger crude-supply draws “than seasonal averages would expect,” said Robbie Fraser, commodity analyst at Schneider Electric.

“That’s ultimately the key factor behind surging prices (alongside elevated geopolitical risk), and continues to overshadow rising production from U.S. shale producers,” he said in a note.

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