LONDON, Nov 16: Oil prices rose back above $95 on Friday on predictions that Opec will not discuss raising output at its weekend summit and amid fresh tensions over Iran.
New York’s main contract, light sweet crude for December delivery, jumped $1.70 to $95.13 per barrel.
In London, Brent North Sea crude for January delivery won $1.39 to $91.62 per barrel. The December contract expired Thursday at $90.94.
“Oil prices were higher on Friday, recouping last night’s losses after a bearish US fuel inventories report, which showed a surprise build in crude stocks,” Sucden analyst Michael Davies said.
“Opec members are due to meet for a summit in Riyadh over the weekend, but the group will not discuss output hikes and will focus on longer term strategies and production.
“However, this does not mean that the cartel will not consider hiking production during its official policy meeting in December, as high oil prices remain a concern,” Davies added.
Algerian Energy Minister Chakib Khelil said on Friday that prices would remain at current levels until the end of the first quarter of next year and would not break the $100 barrier.
“I doubt prices will go beyond $100 because there is plenty of supplies and fears of recession,” he told reporters.
The market was also following tensions over Iran.
World oil prices had retreated Thursday on easing supply concerns as Opec lowered its estimate for demand growth and the US government reported a surprise increase in domestic crude stockpiles, traders said.—AFP
