Growth hopes for China and start of Opec output cuts push oil prices up
London — Oil prices rose on Thursday, supported by the start of Opec output cuts and expectations of strong demand growth in China, but rising US crude inventory reinforced oversupply concern. Brent crude oil was up 25c at $55.35 a barrel by 9.30am GMT. US crude was up 5c at $52.30. The Organisation of the Petroleum Exporting Countries agreed in November to cut output to reduce a global glut depressing prices for more than two years. "Reports are emerging that Opec signatories to the production-cut agreement have commenced reducing output," said Daniel Hynes, commodities analyst at ANZ Research. Iraq Oil Minister Jabar Ali al-Luaibi said on Thursday that Iraq was "hoping for a better price". Iraq had reduced its oil exports by 170,000 bpd and was cutting them by a further 40,000 bpd this week, he said. Kuwaiti Oil Minister Essam Al-Marzouq said on Thursday that Kuwait had cut its oil output by more than it promised under the Opec deal, but gave no details. Saudi Arabia has earmarked...
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