27.06.201701:58:00UTC+00Oil Extends Gains for Fourth Day on Short-Covering

Crude prices rallied for the fourth straight session as investors short-covered positions, although concerns over a persistent supply glut limited gains in prices.

U.S. WTI crude futures rose 12 cents or 0.3 percent at $43.50 per barrel, while Brent crude futures climbed by 14 cents or 0.3 percent to $45.97 per barrel.

The market is marginally up so far this week after declining in the last five weeks.

OPEC and its partners have been attempting to rein in a global crude oversupply with production cuts. Countries who are members of the cartel, along with 11 other exporters agreed in May to prolong cuts of 1.8 million bpd until March 2018.

However, OPEC countries who are excluded from the cuts, Nigeria and Libya, have stepped up their production.

Aside from these countries, U.S. shale output has also climbed by around 10 percent since 2016, with the number of operating U.S. oil rigs hitting its highest level in over three years.

It seems that hedge funds and money managers have lost all hope that OPEC will be able to rebalance the oil market, as they reduce their formerly bullish bets on crude futures and options, according to analysts.