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Oil remains supported by output cut hopes

Published 06/01/2017, 11:32 pm
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Investing.com – Oil was slightly higher Friday, as hopes that a landmark agreement between major producers to cut output continued to support prices and investors looked ahead to data on U.S. drilling activity. U.S. crude was up 35 cents, or 0.65%, at $54.11 at 06:50 ET, while Brent crude gained 39 cents, or 0.69%, to $ 57.28. Reports out Thursday of supply cuts from Saudi Arabia and Abu Dhabi coming into effect as part of efforts by the OPEC and other producers to curb a global supply glut gave oil prices upside. Also supporting black gold, official EIA data out a day earlier saw crude stockpiles decline by 7.1 million barrels, compared to expectations for a drop of 2.2 million. Still, market participants were cautious on Friday ahead of the U.S. employment report for December. A rate rise may strengthen the U.S. dollar, which could depress oil prices as it would make the greenback-denominated commodity more expensive for holders of other currencies. Investors also looked ahead to the Baker Hughes U.S. rig count data for the latest week. Last week, the oilfield services provider said that the number of rigs drilling for oil in the U.S. increased by 2 to 525 in what was the ninth straight weekly rise and a level not seen in almost a year.

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