Crude Oil Prices Rise as IEA Lauds OPEC Output Cut Compliance

Crude oil prices rose after an IEA report said OPEC demonstrated “record compliance” of 90 percent with an output cut deal struck late last year. The group also revised up their 2017 oil demand forecast for the third consecutive month. Gold prices managed a shallow recovery having dropped to a four-day low in what appeared to be corrective price action ahead of the weekend.

Looking ahead, EIA drilling productivity data and OPEC’s monthly report are in focus. The market-moving potential of the self-congratulatory tone likely to be on offer in the latter may have been somewhat diminished by the IEA. The former may temper the bulls’ exuberance however, showing that strong growth in swing production may undermine the cartel’s efforts.

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