By Scott DiSavino | NEW YORK
Reuters
Dec 16, 2016
Oil rose on Friday, edging closer to new 17-month highs, after Goldman Sachs boosted its price forecast for 2017 and producers showed signs of adhering to a global deal to reduce output.
Brent futures rose $1.19, or 2.2 percent, to settle at $55.21 a barrel, while U.S. West Texas Intermediate crude rose $1, or 2 percent, to settle at $51.90 per barrel.
That put both contracts on track to rise for a fourth week in the last five, with Brent up around 23 percent during that time and U.S. crude up about 20 percent.
The premium of the Brent front-month over the same U.S. contract closed at $2.26 a barrel, its highest since the end of August.
“We’re up today because Goldman Sachs bumped up its oil estimates and the Russians said their oil companies would reduce output,” said Phil Davis, managing partner of venture capital fund PSW Investments in Woodland Park, New Jersey.
The Organization of the Petroleum Exporting Countries agreed to reduce output by 1.2 million barrels per day (bpd) from Jan. 1, its first such deal since 2008. Russia and other non-OPEC producers plan to cut about half as much. Continue reading “Oil rises on Goldman forecast, signs producers complying with cuts”