NEW YORK: Oil prices rose nearly 3 per cent on Friday, climbing further from five-month lows hit this week, after Saudi Arabia said OPEC was close to agreeing to extend an output production cut beyond June and as Wall Street rallied.
Saudi Energy Minister Khalid al-Falih told a conference in Russia that the Organization of the Petroleum Exporting Countries and its allies should extend oil production cuts. Supply has also been limited by U.S. sanctions on oil exports from Venezuela and Iran. On Thursday, Washington tightened pressure on Venezuela's state-owned oil company by making clear that exports of diluents by international shippers could be subject to sanctions.In the United States, energy firms this week reduced the oil rig count to the lowest since February 2018.
"What we've seen is global central banks are ready to respond to a slowdown in the economy," said Phil Flynn, an analyst at Price Futures Group in Chicago."In the U.S., if that's the case, we're going to see more stimulus added to the market."