Oil price high as Brent Crude hits $60 a barrel

Oil price high as Brent Crude hits $60 a barrel

Oil price high as Brent Crude hits $60 a barrel

Ahead of OPEC's policy meeting on November 30, Saudi Arabia and Russian Federation declared their support for extending an OPEC-led deal to cut supplies for another nine months, the Organization of the Petroleum Exporting Countries' secretary general said.

The global benchmark rose as high as $60.53 before 1930 GMT, gaining 2 percent after closing at $59.30 Thursday. The pact now runs to March 2018.

U.S. West Texas Intermediate crude CLc1, meanwhile, rose 46 cents, or 2.05 percent, to settle at a more than six-month high of $53.54, its highest close since April.

Oil on track for weekly gains of 2%. USA crude rose 4.7 percent for the week. Canada saw a decline of 11 in the number of active oil and gas rigs. It was near the highest level since July, 2015, bolstered by comments about cutting production from the influential crown prince of Saudi Arabia.

Friday's announcement of ceasefire between Iraqi forces and the Peshmerga from the country's autonomous northern Kurdish region eased some concerns.

Inventories in the Fujairah Oil Industry Zone (FOIZ) were 6 percent higher in the week to October 23 to a total of 1.38 million tonnes.


Few fuel oil exports contributed to the build in inventories, industry sources said.

"I think the combination of short-covering and Chevron and Exxon both missing their production guidance for the third quarter has resulted in the market strength today", said Scott Shelton, energy futures broker with ICAP in Durham, North Carolina.

Oil fell as the biggest surge in US output in half a decade overshadowed record overseas demand for American crude and fuels. The global benchmark crude traded at a premium of $6.26 to WTI, the widest in more than four weeks.

Saudi Crown Prince Mohammed bin Salman said Friday his country would support the extension of an output cut agreement beyond its deadline next March, a move that would push prices higher with less production from the Kingdom, the world's biggest oil exporter. While demand has yet to catch up to elevated supplies, rebounding economies in Europe and steady economic growth in the US could at least keep oil prices steady around current levels in the second half of 2017.

Government data showed that US crude production rose 1.1 million bpd last week to 9.5 million bpd after a decline due to Hurricane Nate, while USA oil exports hit a new record four-week average of 1.7 million bpd.

Related news