Published: Sat, February 17, 2018
Global | By Enrique Rogers

Oil rises on Saudi pledge to cut output, weak dollar By

Oil rises on Saudi pledge to cut output, weak dollar By

Brent crude, the global benchmark, rose 32 cents to$64.68 as of 0943 GMT, extending the previous session's gain of $1.64.

The premium of Brent over WTI dropped to almost the lowest in six months in volatile and mixed oil trade on Thursday, in which a weaker dollar and a Saudi pledge to more than overcomply with the production cuts supported prices, while concerns of oversupply from US shale and increased USA inventories dragged prices down.

West Texas Intermediate settled up 74 cents to $61.34 per barrel, which extended its 2.4-percent gain achieved on Wednesday; however, Brent dropped 2 cents to $64.34 per barrel after climbing 2.6 percent the day prior.

Speculators also cut net long U.S. crude futures and options positions in the week to February 13 by the most since late August, the U.S. Commodity Futures Trading Commission (CFTC) said.

The U.S. oil rig count, an indicator of future production, rose seven to 798, its highest in three years, according to a weekly report from General Electric's Baker Hughes unit. A weaker dollar makes oil and other dollar-denominated commodities cheaper for holders of other currencies, potentially boosting demand.

"Prices are being additionally boosted by the fact that the US dollar has been significantly weaker since yesterday". "The weaker dollar has been extremely supportive to crude", said Bill Baruch, president and founder of Blue Line Futures. It should soon overtake Saudi Arabia, and could usurp Russia's production by the end of 2018, the IEA says.

Sonos One Can Leave White Marks on Some Wood Furniture as Well
According to Apple , the white, circular marks left behind by the HomePod on wooden surfaces may improve after several days. Users of the HomePod have confirmed that the device leaves an unusual white stain on the wood on which it is placed.

However, surging US production is offsetting OPEC's efforts to curb supplies.

The deal to cut oil output by 1.8 million barrels a day (bpd) was adopted last winter by OPEC, Russia and nine other global producers.

US crude production hit a record 10.27 million barrels per day, the Energy Information Administration said on Wednesday, more than Saudi Arabia pumps with Riyadh's voluntary curb on its output and not far from Russian Federation.

Suhail Al Mazroui, energy minister for the UAE, which now holds the Opec presidency, told The National on Thursday that Opec is encouraging members to build in oil capacity buffers to temper any wild upswings in price due to the weak United States dollar this year.

A little-noticed addition to the US budget deal approved last week was also expected to further boost USA crude production by more than tripling a tax credit to producers for injecting carbon dioxide back into the earth to increase output.

Like this: