Brent oil rose above $56 a barrel after OPEC members including Saudi Arabia said output cuts are bringing the market into balance, while the dollar weakened.
The level of compliance with the output-reduction deal and the outlook for rising global demand should balance the market in the first half, meaning the six-month accord probably won’t need to be extended, Saudi Arabia’s Energy Minister Khalid Al-Falih said. Bloated global oil inventories should start to decline, said United Arab Emirates Energy Minister Suhail Al Mazrouei. The dollar weakened after President-elect Donald Trump said the U.S. currency is already “too strong.”
Brent for March settlement traded at $56.48 a barrel, up 62 cents, on the London-based ICE Futures Europe exchange at 12:14 p.m. in London. The contract gained 41 cents to $55.86 a barrel on Monday. Prices have averaged about $55 since the start of December. The global benchmark crude traded at a premium of $2.63 to West Texas Intermediate.
WTI for February delivery rose 67 cents from Friday’s close to $53.04 a barrel on the New York Mercantile Exchange. Monday’s transactions will be booked with Tuesday’s because of the Martin Luther King Jr. holiday in the U.S.
more at: https://www.bloomberg.com/news/articles/2017-01-16/oil-rises-as-saudi-energy-minister-sees-market-balanced-by-june