Oil prices rise ahead of output cuts compliance meeting
Xinhua, January 21, 2017 Adjust font size:
Oil prices soared Friday as market expects that a weekend meeting of world oil producers would introduce an output cut compliance mechanism.
Members of the Organization of the Petroleum Exporting Countries (OPEC) and some producers outside of OPEC, including Russia, will meet this weekend in Vienna to make sure that oil producers are sticking to the output cut deal they reached last year.
Saudi Arabia's energy minister said that 1.5 million barrels per day had already been taken out of the market this month, according to media reports.
However, rising U.S. oil rig counts pared some of the gains. Rigs classified as drilling for oil are up 29 to 551 in the January 20 week, said oilfield service company Baker Hughes on Friday in its weekly report.
The West Texas Intermediate for February Delivery added 1.05 dollars to settle at 52.42 dollars a barrel on the New York Mercantile Exchange, while Brent crude for March delivery increased 1.33 dollars to close at 55.49 dollars a barrel on the London ICE Futures Exchange. Enditem