Can US Crude Oil Hit a New 2017 High Next Week?

Crude Oil Dips After Inventories Data

The pact runs until March 2018 and the countries are now considering extending it.

Oil prices were little changed after erasing earlier losses by midday on Thursday as Middle East tensions and Saudi comments about ending a global supply glut offset an unexpected increase in USA crude inventories and high USA production and exports. The country's Crown Prince, Mohammad bin Salman spoke of a new future for Saudi Arabia and re-iterated Al-Falih's comments on the oil market, adding that the Saudi government will work with all OPEC and non-OPEC countries and "will support anything to stabilise the oil demand and supply".

Brent futures rose $1.14, or 1.9 percent, to settle at $60.44 a barrel after hitting a session peak of $60.53, the highest since July 2015 and more than 35 percent above 2017 lows touched in June.

The crude oil price fell in Asia on Thursday as weekly data confirmed a surprise build in USA inventories and investors mulled demand prospects globally.

Oil prices were mainly flat Thursday, as the market held steady in a newfound, higher range for crude. A forecast from the EIA, meanwhile, said expectations for WTI are what drive its forecast for crude oil production.

"The seizure of the Kirkuk oil fields a few weeks ago, coming on the heels of the Kurdish referendum for independence, led to a temporary sidelining of some 400,000 bpd".

A weaker dollar makes greenback-denominated commodities, including oil, cheaper for holders of other currencies. That sent WTI's discount to global marker Brent to the widest in a month.

"If OPEC and their non-OPEC partners can agree to extend their production curtailments through 2018, then we estimate the oil market will remain in modest under-supply until 2019", USA investment bank Jefferies said.

Last week the oilfield services firm said that its weekly count of oil rigs operating in the USA fell by seven to 736, chalking up its third straight decline to the lowest level since June.

The Organization of the Petroleum Exporting Countries (OPEC), plus Russian Federation and nine other producers have cut oil output by about 1.8 million barrels per day (bpd) since January.

Rising U.S. crude production remains an issue for OPEC as it strives to clear a global overhang.

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