Saturday, 21 January 2017
Oil Prices Jump 2 Percent Ahead Of Producers' Compliance Meeting
Oil prices rose more than 2 percent on Friday on expectations that this weekend's meeting of the world's top oil producers would demonstrate compliance to a global output cut deal, but rising U.S. drilling activity limited gains.
Members of the Organization of the Petroleum Exporting Countries and some other producing countries including Russia will meet in Vienna this weekend to establish a mechanism to verify compliance with a deal to cut 1.8 million barrels per day (bpd) of output, OPEC's secretary general told Reuters. Saudi Arabia's energy minister said 1.5 million bpd had already been taken out of the market.
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"The petroleum markets are moving higher in Friday trade on the latest round of positive talk about how much supply oil producers have taken offline ahead of Sunday's review by OPEC and non-OPEC representatives in Vienna," Tim Evans, Citi Futures' energy futures specialist, said in a note. Brent crude ended the session up $1.33, or 2.5 percent, at $55.49 a barrel. U.S. crude for February delivery closed up by $1.05, or 2 percent, at $52.42 a barrel before expiring.
The more active March contract settled up 2.1 percent at $53.22. For the week, both contracts were largely unchanged. Prices pared gains after data from energy services firm Baker Hughes showed U.S. drilling companies this week added the most oil rigs in nearly four years.