Oil climbed further above $52 a barrel on Friday, supported by a drop in US fuel inventories, though gains were kept in check by ample crude supplies even as OPEC plans to cut output.
Global benchmark Brent crude rose 42 cents to $52.45, with US crude up 58 cents at $51.02, CNBC reported.
Brent crude reached a 2016 high near $54 on Monday, underpinned by OPEC’s Sept. 28 deal to reduce oil production, before weakening on rising US crude stocks and as the Organization of Petroleum Exporting Countries’ own numbers showed output is still rising.
US inventories of distillates, which include diesel and heating oil, fell by 3.7 million barrels, the government’s weekly supply report said on Thursday. Gasoline stocks fell by 1.9 million barrels.
“The end result was slightly positive,” Stephen Brennock, of broker PVM, said in a report, referring to Thursday’s US supply data. The rise in crude stocks was “more than offset” by lower fuel inventories, he said.
OPEC’s plan is to cut its supply to around 32.5 million barrels per day to help balance supply and demand and revive prices that remain less than half of the levels reached in mid-2014.
However, a lack of much detail in the initial agreement, such as how much each of the 14 members can pump and the scale of any contributions from non-OPEC countries such as Russia, has left analysts skeptical.
