Oil up 2 pct, Brent hits $60/bbl on support for extending curbs

Oil up 2 pct, Brent hits $60/bbl on support for extending curbs

The worldwide benchmark for oil prices was trading up $1.05, or 1.8 percent, at $60.35 a barrel at 11:17 a.m. ET (1517 GMT).

Saudi Arabia's Crown Prince Mohammad bin Salman told Reuters on Thursday the kingdom would support extending the output cut in a bid to stabilize oil demand and supply. The pact runs to March 2018, but they are considering extending it. West Texas Intermediate, the US benchmark for the price of oil, was more or less unchanged at $52.21 per barrel.

Oil on track for weekly gains of 2%. But the fundamental outlook has also shifted, with stockpiles falling and questions about the growth rate of US shale output also fueling gains.

USA drillers added one oil rig in the week to October 27, but the rig count fell by 13 for the month, the biggest such decline since May 2016, data showed on Friday.

The spot price for WTI is also trading up to its highest level in six months, up 2.07% on the day at $53.73 at 12:30pm EST.

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

"What is interesting is that the pop in WTI futures moved above the September 28 high", said David Thompson, executive vice president at Powerhouse, an energy-specialized commodities broker in Washington.

Crude oil prices were stable to mixed early Thursday.

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A weaker dollar makes greenback-denominated commodities, including oil, cheaper for holders of other currencies.

Asia's fuel oil crack fell for a third consecutive session on Friday amid rising fuel oil inventories across key storage hubs over the past week as well as strength in crude oil prices, trade sources said.

WTI light sweet crude oil fell 29 cents to settle at USD52.18 a barrel.

Brent crude LCOZ7, -0.19%, the global benchmark, was down 0.2% at $58.35 a barrel on London's Intercontinental Exchange.

"If OPEC and their non-OPEC partners can agree to extend their production curtailments through 2018, then we estimate the oil market will remain in modest under-supply until 2019", USA investment bank Jefferies said.

The Organization of the Petroleum Exporting Countries and some non-OPEC producers including Russian Federation have pledged to reduce production by around 1.8 million barrels per day (bpd) until the end of March 2018 to drain a global supply glut.

Fuel oil stocks in the Amsterdam-Rotterdam-Antwerp (ARA) oil hub rose 6 percent, or 77,000 tonnes, to 1.334 million tonnes in the week to October 26, PJK data showed.

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