Crude oil futures settled higher on Thursday, as supply cuts by Organization of the Petroleum Exporting Countries (OPEC) and other major exporters tightened the market despite higher production in the United States. OPEC decided to extend cuts in oil output by nine months to March 2018. 

The producer group is coping with a global glut of crude oil after seeing prices halve and revenues drop sharply in the recent past. The cuts are likely to be shared again by a dozen non-OPEC members led by top oil producer Russia, which reduced output in tandem with OPEC from January. 

Russian oil output edged up to 10.93 million bpd in October from 10.91 million bpd in September, but the country remains in compliance with the deal to curb output. 

Meanwhile, Saudi Arabian Energy Minister Khalid al-Falih said that supply and demand balances were tightening and oil inventories falling, while compliance with the OPEC-led pact to curb supplies had been excellent.

Benchmark crude oil futures for December delivery ended higher by 24 cents at $ 54.54 a barrel on the New York Mercantile Exchange. Brent crude for January delivery was up by 13 cents to $60.62 a barrel on the ICE.

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