x
Breaking News
0

Crude settles above $50 for first time in five weeks

CommoditiesMay 19, 2017 02:35PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Crude futures settled above the key $50 price level on Friday

Investing.com – Crude futures settled higher on Friday, as investors turned attention to the OPEC meeting next week amid growing expectations that OPEC members will extend supply cuts for a prolonged period.

On the New York Mercantile Exchange crude futures for June delivery gained 98 cents to settle at $50.33 a barrel, while on London's Intercontinental Exchange, Brent added 0.97 cents to trade at $53.48 a barrel.

Investors hopes of an extension of the current supply-cut agreement to March 2018, received a boost on Thursday, after Algerian Energy Minister, Noureddine Boutarfa, said that most OPEC members support Saudi Arabia and Russia’s proposal to prolong the production cuts to March next year, and that the rate of compliance should increase.

Saudi Arabia and Russia agreed earlier this week that the production cuts needed to be extended for a period of nine months until March 2018.

"There has been a marked reduction to the inventories, but we're not where we want to be in reaching the five-year average," Saudi Energy Minister Khalid al-Falih said on Monday.

In November last year, OPEC and other producers, including Russia agreed to cut output by about 1.8 million barrels per day (bpd). The deal to cut supply started in January this year for a period of six months until June.

OPEC is expected to decide at talks on May 25 whether to extend the current deal to cut production.

Meanwhile, the rising level of U.S. oil output returned to the fore, after oilfield services firm Baker Hughes reported its weekly U.S. rig count rose by 8 to 720.

Crude prices posted a second-straight weekly gain, settling above the key $50 level for the first time since April.

Crude settles above $50 for first time in five weeks
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

 
Are you sure you want to delete this chart?
 
Write your thoughts here
 
Replace the attached chart with a new chart ?
Post
Post also to:
1000
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
Leo Mu
Leo Mu May 20, 2017 3:31AM GMT
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Life is hard (not good) for oil producers, personal income is rising, but unemployed oil workers have no jobs. Life is unfair.
Reply
0 0
Ahmad Alamla
Ahmad Alamla May 19, 2017 6:46PM GMT
Saved. See Saved Items.
This comment has already been saved in your Saved Items
that is realy good
Reply
0 0
 
Are you sure you want to delete this chart?
 
 
Replace the attached chart with a new chart ?
Post 1000
Please wait a minute before you try to comment again.
 
 
 
Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Add Chart to Comment
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email