Oil tops $55 for first time in 16 months
- InvestorsBuz Oil tops $55 The commodity is trading at $52.09 per barrel at 10:40 GMT this morning, 0.79% higher from the New York close.
- Crude oil witnessed a high of $52.33 per barrel and a low of $51.04 per barrel during the session. In the New York session on Friday, crude oil rose 2.64% to close at $51.68 per barrel, extending its previous session gains. Meanwhile , Baker Hughes reported that US oil rig count rose by 3 to 477 last week.
- Separately, news emerged that non-OPEC producers are set to meet with the cartel’s members next week to finalize a global oil limiting pact. Immediate downside, the first support level is seen at $50.74 per barrel, while on the upside, the first resistance level is at $52.89 per barrel.
Oil tops $55
Oil tops $55 Brent Crude Oil prices rose above $55 a Barrel on Monday, trading at a fresh 16-month high, as optimism spread about the prospect of a tightening market after OPEC members agreed on a landmark deal to cut production last week.
Monday’s gains take the rally since the agreement was struck on Wednesday to 19 percent for Brent, the highest in almost eight years, and 16 percent for U.S. crude.
From January, non-OPEC producers are expected to add an output cut of 600,000 barrels per day (bpd) to OPEC’s agreed 1.2 million bpd reduction.
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Oil tops $55
However, one large uncertainty in the global supply balance is output from the United States, whose shale oil drillers proved more resilient than expected to weak oil prices.
US energy firms extended their recovery in oil drilling into a seventh month last week, data from energy services firm Baker Hughes showed on Friday.
Overall, accounting for the recent rise in oil drilling, but also for cutbacks earlier this year on low prices, Goldman Sachs said “year-on-year production will decline by 620,000 barrels per day (bpd) in 2016 and increase by 55,000 bpd
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