Saturday, 21 January 2017

Oil price rises 3 pct ahead of producers' compliance meeting

Producers to establish compliance mechanism at meeting - OPEC

1.5 mln bpd of production cut has already happened - Saudi

Brent enters $50-$60/bl range - SEB analyst

Coming Up: Baker Hughes U.S. oil drilling rig count at 1800 GMT (New throughout, adds comments, updates prices, changes dateline to NEW YORK; previous LONDON)

Oil prices rose nearly 3 percent on Friday on expectations that a weekend meeting of the world's top oil producers would demonstrate compliance to a global output cut deal.

"The petroleum markets are moving higher in Friday trade on the latest round of positive talk about how much supply oil producers have taken offline ahead of Sunday's review by OPEC and non-OPEC representatives in Vienna," Tim Evans, Citi Futures' energy futures specialist, said in a note.

Brent crude LCOc1 rose by $1.56, or 2.9 percent, to $55.72 a barrel by 10:51 a.m. EST (1551 GMT).U.S. crude for February delivery CLc1 was up by $1.51, or 2.9 percent, at $52.88 a barrel ahead of expiry. The more active March contract rose $1.42, or 2.7 percent, to $53.54.

U.S. crude inventories rose unexpectedly last week as refineries sharply slowed production, while gasoline stocks soared amid weak demand, the Energy Information Administration said on Thursday. inventories USOILC=ECI soared 2.3 million barrels in the week to Jan. 13, while gasoline builds were much larger than expected, especially on the U.S. East Coast where stocks swelled to the highest level on record for this time of year.

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