Oil prices fell slightly on Friday, remaining near the previous day's highs, on the prospect of talks by exporters about ways to prop up a market grappling with a supply overhang. Brent crude futures were down 19 cents a barrel higher at $45.84 per barrel by 1000 GMT (0600 ET), from a three-week high of $46.66 earlier in the day. U.S. West Texas Intermediate (WTI) crude stood at $43.41 a barrel, down 8 cents after touching its highest level since July 25, at $44.17 per barrel. Both price benchmarks rose more than 4 percent on Thursday after Saudi Arabia's energy minister Khalid al-Falih said that oil producers would discuss potential action to stabilize oil prices during a meeting next month in Algeria.
Futures rose as much as 1.4 percent in New York after sliding 2.7 percent on Wednesday amid a surge in the dollar. U.S. crude supplies fell by 5.04 million barrels last week, the American Petroleum Institute was said to report. Government data Thursday is also forecast to show a decline. Production cuts by OPEC won’t necessarily trigger a “bonanza” of U.S. shale and other supply, the International Energy Agency said.
West Texas Intermediate for February delivery, which expires Friday, rose as much as 73 cents to $51.81 a barrel on the New York Mercantile Exchange and was at $51.44 at 11:54 a.m. in London. Total volume traded was about 12 percent below the 100-day average. The contract lost $1.40 to $51.08 on Wednesday, the most since Jan. 9. The more-active March futures climbed 45 cents to $52.34.
Brent for March settlement added as much as 85 cents, or 1.6 percent, to $54.77 a barrel on the London-based ICE Futures Europe exchange. The contract dropped $1.55, or 2.8 percent, to $53.92 on Wednesday. The global benchmark traded at a premium of $2.09 to March WTI.
As supply curbs by OPEC and Russia drain a global glut, rising prices will spur drilling by U.S. shale explorers that are more efficient after the two-year downturn, said the IEA. The agency had previously seen American production stagnating in 2017.
more at: https://www.bloomberg.com/news/articles/2017-01-19/oil-resumes-advance-as-report-shows-u-s-crude-stockpiles-drop