Oil prices surge after Saudi claimed to support OPEC’s output cut deal

Prices of U.S oil

The price of oil was slightly up on Friday’s opening bell as Brent crude is still on its way to touch its best level since July 3, 2015 after the released remarks from the Crown Prince of Saudi Arabia suggested that he would support the production cuts led by club OPEC.

Mohammad bin Salman, Saudi Arabia’s Crown Prince, said to Reuters on the previous day that the nation would help on sustaining the output reductions of the Organization of the Petroleum Exporting Countries (OPEC), in an effort to normalize supply and demand.

 

OPEC, along with other producers including Russia, are part of the deal to restrict output by as much as 1.8 million barrels per day (bpd) that started last January 2017 and will end on 2018’s first quarter to reduce surplus in an already bloated market. The club will have a meeting this coming November 30 in Vienna.L

ooking oil futures, U.S. West Texas Intermediate (WTI) crude prices was slightly above the flat line by 0.08 percent or 4 cents to settle at $52.68 a barrel. Global benchmark for oil prices London Brent crude was 0.15 percent higher on the day or 9 cents to finish at $59.39 a barrel. Brent is currently on track to an almost 27-month high.

Axitrader’s chief market strategist Greg Mckenna said the prices of WTI and Brent are now approaching significant range tops and his “rhetorical self” is bullish longer term, given that the system is already lengthy.

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