On Friday, crude oil prices in Asia were slightly mixed coming off a US holiday, stepping cautiously ahead of a key review of oil output curbs next week led by the Organization of Petroleum Exporting Countries.
The US West Texas Intermediate crude for January delivery contract eased 0.26 percent at $58.38 per barrel. Brent oil for January delivery on the ICE Futures Exchange in London swelled 0.05 percent to $63.45 per barrel.
Meanwhile, the US rig count increased by nine to747 in the week that ended on November 22, Baker Hughes said in an early release of weekly figures ahead of the Thanksgiving Holiday. The monthly rig count rose for the first time since July as crude prices traded near their highest level since 2015 summer.
For the month, a total of 10 rigs were added. On November, a total of 923 oil and natural gas rigs were active.
Overnight, crude oil prices jounced higher on Thursday. The jounce erased earlier losses as positivity that the market is rebalancing pervaded during the holiday-thinned trade. Additionally, TransCanada’s announcement, which revealed it would slash oil deliveries in the United States by 85 percent or more on its keystone pipeline, fueled the optimism.
After a 5,000-barrel spill in South Dakota, authorities decided to shut the pipeline, which connects Alberta’s oil sands to US refineries.
Trade volumes were light on Thursday as US markets closed for the holiday.
Crude prices climbed on Wednesday after the Energy Information Administration revealed that crude oil inventories dropped 1.9 million barrels the previous week. It marked the first fall in three weeks. Analysts had expected a decline of 1.5 million barrels.
Moreover, prices were supported by stronger signals from OPEC and its allies, who indicated a prolonged supply cuts beyond March next year when producers meet in Vienna the following week.
According to sources with knowledge regarding the matter, top crude exporter Saudi Arabia is currently lobbying oil ministers to agree on a nine-month extension to the supply restraints headed by the organization. Riyadh, meanwhile, is seeking to guarantee that a price-sapping glut will be eradicated.
OPEC, along with its allies spearheaded by Russia, has been curbing output since the beginning of this year, aiming to end a worldwide supply overhang.
The deal is due to expire in March next year. OPEC is set to meet on November 30 to hold talks about policy outlook.
Meanwhile, gold prices slightly swelled in Asia on Friday while concerns about a steep selloff in China overnight eased. Investors turned to focus on the US as well as next week’s Senate review of proposed tax cuts.
Comex gold futures rose 0.06 percent to $1,292.98 a troy ounce. On Thursday, China CSI 300 Index plummeted 52 points in the final 45 minutes of trading. This was the steepest afternoon dip since the January 2016.
Trade volumes were anticipated to stay light on Thursday as the Comex floor trading was scheduled to not open for Thanksgiving.