Forex Marketz Daily Forex News – Fully Markets Update
U.S. crude oil, as well as global crude prices, surged higher Friday. They approached their highest level since the summer of 2015. This is the day after OPEC and nine other major producers, including Russia, agreed to extend output cuts until the end of 2018. This is an effort to try to reduce the global oil glut and boost prices.
The Organization of the Petroleum Exporting Countries (OPEC) and nine non-OPEC producers led by Russia agreed, on Thursday, to keep limits on output in place until the end of next year. They did signal a possible early exit should the market overheat and prices rise too quickly.
U.S. light crude settled Friday’s session 96 cents, or 1.7 percent, higher at $58.36 per barrel. They finished the week one percent lower.
Brent, the global benchmark, was trading at $63.67. This is up $1.04, or 1.7 percent. For the week, the contract was down almost half a percent.
Crude Oil Surges Higher thanks to Fundamentals
Oil prices did pare some gains as the broad market sold off a bit after the OPEC deal. This came in the wake of a news report that former U.S. National Security Adviser Michael Flynn will testify that President Donald Trump directed him to contact the Russians.
In November, both oil benchmarks traded at their highest price points since June 2015. Brent hit $64.65 and WTI was at $59.05. They gained 3.5 percent and 5.5 percent, respectively, for the month.
The market is giving the OPEC, non-OPEC accord its respect. The Saudi oil minister came across as strong and determined to see global crude oil inventories brought down.
The production cut deal, has been in place since January. It was due to end in March. This deal has seen producers reduce output by 1.8 million barrels per day. It has helped halve global oil inventories, over supply, over the past year.
