Brent oil climbs above $60

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Brent oil climbs above $60

It was near the highest level since July, 2015, bolstered by comments about cutting production from the influential crown prince of Saudi Arabia.

Global inventories remain above the five-year average with U.S. crude adding to existing stockpiles. The price for Brent crude oil was down 0.26 percent to trade at $58.29 per barrel at 9:15 a.m. EDT.

But the upturn will be less welcome for motorists bracing themselves for price rises at the petrol pumps, with household finances already under pressure thanks to the weakness of the pound helping to push inflation to a five-year high.

Saudi Arabia's energy minister earlier this week reiterated the kingdom's determination to end a global supply glut that has weighed on prices for more than three years.

The eyes of the world were firmly fixed on Saudi Arabia this week at a major conference focused on investment and development.

Crude rose almost 1% on Thursday after Saudi Arabian Crown Prince Mohammed bin Salman indicated that the top oil exporter needed to extend production cuts in order to stabilize markets, suggesting agreement for another nine month extension.

Oil has held above $50 a barrel for the past two weeks in NY amid increasing confidence that supply cuts by the Organization of Petroleum Exporting Countries and allies including Russian Federation will be extended beyond March. That puts USA supply around 9.5 million barrels a day. That sent WTI's discount to global marker Brent to the widest in a month.

Gasoline stockpiles dropped by 5.5 million barrels for the week, while distillate stockpiles fell 5.2 million barrels, according to the EIA.

Oil on track for weekly gains of 2%. While demand has yet to catch up to elevated supplies, rebounding economies in Europe and steady economic growth in the USA could at least keep oil prices steady around current levels in the second half of 2017.

The focus for OPEC producers in the energy sector in the coming weeks will be working towards finding a rebalance in the market. Kloza said he anticipates weaker prices in the first half of 2018 and he does not expect to see oil trading in the sixties until 2019. This essential and urgent intent is being welcomed and applauded by all while American production is being watched with caution.

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