Crude oil moves higher but upside seen limited

 

 
 
 

 

 

U.S. oil prices climbed on Friday, amid hopes major oil produces will extend their production plan in order to stabilize the market, but gains were expected to remain limited as supply glut concerns continued to linger.

 

U.S. crude futures for June delivery were up 0.67% at $49.30 a barrel.

On the ICE Futures Exchange in London, the June Brent contract advanced 0.60% to $52.13 a barrel.

The Organization of the Petroleum Exporting Countries and other producers including Russia originally pledged to cut output by almost 1.8 million barrels per day (bpd) during the first half of the year.

However, crude prices have recently been supported by hopes OPEC will extend those cuts until the end of 2017 in order to counter rising supplies elsewhere.

Meanwhile, concerns over a global supply glut continue as U.S. crude oil production is now up 10% since mid-2016 at 9.27 million barrels per day, at comparable levels to the peak oil glut between late 2014 and early 2016.

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