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Brent, WTI Prices Rise

Brent, WTI Prices Rise Brent, WTI Prices Rise

Oil prices moved higher on Friday as traders await cues from a meeting that could take place as soon as this weekend where major oil producers will discuss whether to extend record production cuts.
Brent crude futures were up 27 cents, or 0.7%, at $40.26 a barrel, while WTI crude futures rose 17 cents, or 0.5%, to $37.58 a barrel, CNBC reported.
Brent has risen about 14% this week, while WTI is up nearly 6%, leaving benchmarks on track for a sixth week of gains. 
The surge was triggered by the output cuts amid signs of improving fuel demand as countries begin to ease lockdowns they had imposed to prevent the spread of the new coronavirus.
Edward Moya, senior market analyst at OANDA (a leader in currency data), said oil prices are heading for a sixth weekly rise but gains had softened as traders are taking the prospect of Iraq’s full commitment to supply cuts “with a grain of salt”.
“There still could be a chance that they manage to stretch the cut deal to three months, but energy traders would be extremely skeptical that compliance would remain high beyond July,” Moya added.
Saudi Arabia and Russia, two of the world’s biggest oil producers, want to extend output cuts of 9.7 million barrels per day into July.

 

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