With OPEC production cuts that start next month seen being deeper than previously expected, oil prices went up on Friday after dropping 5 percent in the last session.
According to Reuters, Benchmark Brent crude LCOc1 futures were up 1.51 percent at $55.17 per barrel at 0112 GMT, recovering from losses of $2.89 per barrel the session before.
U.S. West Texas Intermediate (WTI) crude futures CLc1 rose 1.53 percent, or 70 cents, to $46.58 per barrel.
The Organization of the Petroleum Exporting Countries plans to release a table detailing output cut quotas for its members and allies such as Russia in an effort to shore up the price of crude, OPEC’s secretary-general said in a letter seen by Reuters on Thursday.
Mohammad Barkindo said to reach the proposed cut of 1.2 million barrels per day, the effective reduction for member countries was 3.02 percent.
That is higher than the initially discussed 2.5 percent as OPEC seeks to accommodate Iran, Libya and Venezuela, which are exempt from any requirement to cut.
“The current oil prices will force OPEC to increase compliance with the production cut deals, supporting Brent prices,” said Wang Xiao, head of crude research at Guotai Junan futures.
“The temporary recovery in prices has been driven by short- sellers buying back.”
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