Oil gets lift from possible Opec cuts, but rising US output limits gains
Bank of America Merrill Lynch has conceded to the bears: ‘Oil bulls, us included, have capitulated and we no longer see oil climbing to $95 a barrel next year’
Singapore — Oil prices rose on Friday amid expectations of supply cuts from the Opec cartel, although record US production limited the gains. US West Texas Intermediate (WTI) crude oil futures were at $56.84 a barrel at 3.53am GMT, up 38c or 0.7% from their last settlement. Brent crude oil futures were up 48c or 0.7% at $67.10 a barrel. Prices were mainly supported by expectations the Organisation of the Petroleum Exporting Countries would start withholding supply soon, fearing a renewed rout such as in 2014, when prices crashed under the weight of oversupply. De facto Opec leader Saudi Arabia wants the cartel and its allies to cut output by about 1.4-million barrels a day, about 1.5% of global supply, sources told Reuters this week. However, Morgan Stanley warned a cut by the Middle East-dominated producer cartel may not have the desired effect. "The main oil price benchmarks — Brent and WTI — are both light-sweet crudes and reflect this glut," the US bank said. "Opec production cu...
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