Opec’s report of lower output in December boosts oil price
Tempering support for prices, however, are signs of weakening demand and surging US oil output
London — Oil prices rose more than over 1% on Friday after a report from oil cartel Opec showed its production fell sharply in December, easing some fears about prolonged oversupply. International Brent crude oil futures were up 62 US cents, or 1.01%, at $61.80 per barrel at 9.55 am GMT. Brent has risen about 2% this week, its third straight week of gains. US West Texas Intermediate (WTI) crude futures were at $52.64 per barrel, up 57c, or 1.09%, from their last settlement. Opec, along with other producers including Russia, agreed last year to output cuts effective January 1 to avert a glut. The producer club's monthly report showed it had made a strong start in December even before the pact went into effect, implementing the biggest month-on-month production drop in almost two years. In a sign that global supply could tighten further, a US-based think-tank predicted that the US may grant waivers on sanctions it imposed on importing Iranian oil to fewer countries. Political risk adv...
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