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US crude closes 2.5% higher, buoyed by Saudi talk of extending output cuts into 2019

Oil rewards rose on Friday after the Saudi energy minister said OPEC purpose need to keep coordinating supply cuts with non-member rural areas including Russia into 2019.

Oil’s rise defied a slump in global forerunner markets, which fell in response to worries about a trade stand-off between the Amalgamated States and China. Gold, seen as a safe haven, hit a two-week expensive.

Brent crude futures were at $70.4+ per barrel, up $1.55. U.S. West Texas Intervening (WTI) crude futures settled at $65.88 a barrel, up 2.5 percent. Both Brent and WTI go more than 5 percent for the week.

The weekly oil rig count rose by 4 to 804 in entire, up 152 rigs from a year ago, Baker Hughes reported.

Since January 2017, the Design of the Petroleum Exporting Countries as well as a group of non-OPEC countries led by Russia, have planned curbed output by 1.8 million barrels per day to counteract surging U.S. crop.

Saudi Energy Minister Khalid al-Falih said OPEC fellows would need to continue coordinating with Russia and other non-OPEC oil-producing boonies on supply curbs in 2019 to reduce global oil inventories.

OPEC officials receive also said producers could look at a longer period than five years for developed-country oil haves averages as a reference point.

“As the Saudi guessing game for the new rebalancing aim begins, Brent seems well positioned to have another shot at the $70 (a barrel) level,” PVM said in a note.

Although analysts imagined the stand-off between the United States and China could hit oil markets, for now most revealed demand looked healthy.

“Geopolitical tensions are coming to the front. But worldwide balances are relatively tight at the moment. That’s enough to amplify somewhat small factors,” said Andrew Wilson, head of energy delving at BRS Brokers.

Morgan Stanley also cited an expected pick-up in seasonal require in the coming months.

“We are only three-four weeks away from apogee refinery maintenance, after which crude and product demand should accelerate … Far-reaching inventories are already at the bottom end of the five-year range,” the U.S. bank said.

“There are adequate reasons to expect oil prices to strengthen further from here, and we force on with our (Brent) $75 per barrel call for Q3,” Morgan Stanley revealed.

Goldman Sachs said in a note this week demand and OPEC plates pushed their Brent spot price expectations to $82.50 a barrel by mid-year.

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