A survey showed that the Organization of the Petroleum Exporting Countries in January achieved 82 percent compliance with its promised production cuts, well above most market forecasts
, photo: Reuters/Heinz-Peter Bader
31 of January 2017 12:50:23
NEW YORK – Oil prices rose nearly 2 percent on Tuesday after news that the world's top producers cut production this month more than forecasters had expected and as the dollar sank.A survey showed that the Organization of the Petroleum Exporting Countries (OPEC) in January achieved 82 percent compliance with its promised production cuts, well above most market forecasts."This is very high, a good number," an OPEC source said of the January compliance estimate.The dollar was down by 0.9 percent versus a basket of currencies, boosting greenback-denominated oil. The dollar was on course for its biggest monthly decline since March.Brent crude oil was up 66 cents a barrel at $55.89 by 1:00 p.m. EST. U.S. light crude was up 72 cents at $53.35.Prices pared gains slightly after Iraqi Prime Minister Haider al-Abadi said oil prices will not reach "levels desired" by Iraq before the end of 2018 or 2019.Both benchmarks have traded within narrow ranges over the last two months, since OPEC and other big exporters agreed to cut output by almost 1.8 million bpd in an attempt to clear a global glut."Direct oil market fundamental news seemed more mixed, with Iran claiming output in line with its OPEC agreement when the production level cited was still more than 100,000 bpd above its target and U.S. refiners still shutting more units for planned maintenance work," Tim Evans said.
DEVIKA KRISHNA KUMAR