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Oil holding above $33 on hopes for production cut

Published 28/01/2016, 13:22
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Investing.com - Oil prices rose on Thursday, extending a pullback from a 12-year low set this month, supported by the possibility that major producers may cooperate to cut production.

Russian officials have decided they should talk to Saudi Arabia and other OPEC countries about output curbs to bolster oil prices, which have halved since last May, the head of Russia's pipeline monopoly said.

Brent crude was up 1.18% at $34.34 a barrel by 11.49 GMT, after ending up 4.1% on Wednesday. It was around $6 higher than the 12-year low set earlier in January.

U.S. crude was at $32.41 a barrel after a 2.7% gain in the previous session.

Separately, the Energy Information Administration said Wednesday that U.S. crude inventories climbed by 8.4 million barrels last week, higher than analyst expectations for a rise of 3.3 million barrels.

That brought crude inventories to the highest level since the EIA began tracking the data.

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