Investing.com – Crude oil prices were narrowly mixed in Asia on Friday coming off a US holiday and cautious ahead of a key OPEC review of oil output curbs next week.
The U.S. West Texas Intermediate crude January contract eased 0.26% at $58.38 a barrel, while for January delivery on the ICE Futures Exchange in London gained 0.05% to $63.45 a barrel.
The US rig count rose by nine to 747 in the week ended Nov. 22, Baker Hughes said in an early release of weekly figures ahead of the Thanksgiving holidays, with the monthly rig count rising for the first time since July as crude prices traded near their highest levels since the summer of 2015. A total of 10 rigs were added for the month.
A total of 923 oil and rigs were active on Nov. 22.
Overnight, prices bounced higher on Thursday, erasing earlier losses as optimism that the market is rebalancing resurfaced in holiday-thinned trade. Also adding to positive sentiment on oil prices was an announcement by TransCanada revealing that it would slash oil deliveries to the United States by 85% or more on its keystone crude pipeline.
The line, which links Alberta’s oil sands to U.S. refineries, was shut last week following a 5,000-barrel spill in South Dakota.
Trade volumes were light on Thursday, with U.S. markets closed for the Thanksgiving holiday.
Crude prices climbed after after the EIA reported on Wednesday that crude oil inventories fell by 1.9 million barrels last week, marking the first decline in three weeks. That was compared with analysts’ expectations for a decline of 1.5 million barrels.
Prices received additional support from growing signals that the Organization of Petroleum Exporting Countries (OPEC) and its allies will agree to prolong supply curbs beyond March when producers meet in Vienna next week.
Top crude exporter Saudi Arabia is lobbying oil ministers to agree on a nine-month extension to OPEC-led supply cuts, sources familiar with the matter said, as Riyadh seeks to ensure a price-sapping glut is eradicated.
OPEC, together with a group of non-OPEC producers led by Russia, has been restraining output since the start of this year in a bid to end a global supply overhang and prop up prices.
The deal to curb output is due to expire in March 2018, but OPEC will meet on Nov. 30 to discuss the outlook for the policy.
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Source: Investing.com
