Oil rises to $58, set for weekly gain

Oil prices rose on Friday as investors bet that efforts to cut a global glut are working and that the demand outlook is improving.

U.S. crude was down 8 cents at 51.48 dollars a barrel after earlier rising slightly. Still the contract is heading for a fourth consecutively weekly gain.

Global benchmark Brent crude was 57.54 dollars a barrel of around 20 per cent, this performance is Brent’s best since June 2016.

Earlier in the week on Monday Brent rose to 65 dollars.

The price gains, most of them in the last two-and-a-half weeks, have come as traders anticipated renewed demand from U.S. refiners that were resuming operations after shutdowns due to Hurricane Harvey.

Major world oil producers outside the United States have also indicated they will stick to output cuts to limit supply.

They are getting support from Turkey’s threats to cut off a pipeline from the Kurdish region of Iraq after a referendum where Kurds voted overwhelmingly in favour of independence.

Advertisements

Be the first to comment

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.