Investing.com - Oil prices moved higher in pre-New Year holiday trade on Friday, on track for its largest annual gain since 2009. U.S. crude rose 22 cents, or 0.41%, to $53.99 at 05.13 ET. Brent crude advanced 23 cents, or 0.40%, to $57.08. The strong gains registered in 2016 have come on the back of an agreement between OPEC and other producers led by Russia to reduce output by 1.8 million barrels per day starting from January 1, 2017.
Oil prices will gradually rise towards $60 per barrel by the end of 2017, a Reuters’ poll showed on Thursday, though experts expect a lack of compliance in the output deal a stronger dollar to limit further gains. Investors also looked ahead to the Baker Hughes U.S. rig count data for the latest week.
The number of rigs drilling for oil in the U.S. the previous week increased by 13 to 523, the eighth straight weekly rise and a level not seen in almost a year.