Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

Oil futures rally over 5% amid output cut rumors

Published 02/12/2016, 06:55 AM
© Reuters.  Oil moves higher but remains near 13-year trough

Investing.com - U.S. oil futures rallied over 5% on Friday, boosted by rumors of a potential decline in production levels by the Organization of the Petroleum Exporting Countries but prices still remained below $27 a barrel, near a 13-year trough.

U.S. crude futures for March delivery were last at $27.59 a barrel, up 5.25%.

On the ICE Futures Exchange in London, the April Brent contract was up 5.26% at $31.64 a barrel.

Oil prices strengthened after the United Arab Emirates energy minister said late Thursday that the OPEC was willing to talk with other exporters about cutting output.

He added that cheap oil was already forcing some output reductions which would help rebalance the market.

Global crude production is outpacing demand following a boom in U.S. shale oil and after a decision by the OPEC last year not to cut production in order to defend market share.

Oversupply issues will be exacerbated further as Iranian exports return to the global oil market.

Latest comments

smokescreen, nothing else. They are playing with the markets. If cutting supply wasn't an option at $27 for brent, then it sure isn't an option now at $31 and let the US Shale survive. For what reason, other than to squeeze US Shale, have S-A engaged in letting the oilprices dump from $115 to these levels if not to get these producers out of business? The energy minister of UAE wants us to believe that now, close to max pain threshold, SA is to throw in the towel and give up regaining markets share longterm for a short term pain? I don't think so.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.