Oil prices rose on Friday after the Saudi energy minister said OPEC would need to keep coordinating supply cuts with non-member countries including Russia into 2019.
Oil’s rise defied a slump in global stock markets, which fell in response to worries about a trade stand-off between the United States and China. Gold XAU=, seen as a safe haven, hit a two-week high.
Brent crude futures LCOc1 were at $69.10 per barrel at 1136 GMT, up 19 cents but off a session high of $70. For the week, Brent was up about 4.4 percent, its strongest showing since October.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $64.57 a barrel, up 27 cents but below a session high of $65.42. On the week, WTI was up about 3.6 percent.
Since January 2017, the Organization of the Petroleum Exporting Countries as well as a group of non-OPEC countries led by Russia, have curbed output by 1.8 million barrels per day to counteract surging U.S. output.
Saudi Energy Minister Khalid al-Falih said OPEC members would need to continue coordinating with Russia and other non-OPEC oil-producing countries on supply curbs in 2019 to reduce global oil inventories.
OPEC officials have also said producers could look at a longer period than five years for developed-country oil stocks averages as a reference point.
“As the Saudi guessing game for the new rebalancing target begins, Brent seems well positioned to have another crack at the $70 (a barrel) level,” PVM said in a note.
Although analysts said the stand-off between the United States and China could hit oil markets, for now, most said demand looked healthy.
read more/source: https://www.reuters.com/article/us-global-oil/oil-buoyed-by-saudi-talk-of-extending-output-cuts-into-2019-idUSKBN1GY03D