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Oil up 1% on output cut deal extension hopes

Published 19/05/2017, 13:17
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Investing.com - Oil was higher Friday after a seesaw session overnight as the market swayed between supply glut concerns and hopes for an extension of an output cut deal by major producers.
U.S. crude was up 62 cents, or 1.26%, at $49.97 at 07:30 ET after touching $50. Brent added 63 cents, or 1.20%, to $53.14.
On the immediate front, investors are looking to Baker Hughes U.S. rig count data later in the session.
Forecasts for U.S. output this year have been raised in the wake of a significant pick-up in U.S. drilling activity.
That has raised the ante for OPEC and non-OPEC producers to extend a deal to cut 1.8 million barrels a day in the first half to re-balance the market.
Saudi Arabia and Russia have backed a nine-month extension of the deal to March.
OPEC and non-OPEC producers are due to meet on May 25.

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