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US oil prices extend gains on compliance with output cuts

Oil climb for a third day on Friday after a survey showed strong compliance with create cuts by OPEC and others including Russia, offsetting concerns encircling surging U.S. production.

Brent futures, the global benchmark, were up 19 cents, or 0.3 percent, at $69.84 a barrel by 0352 GMT.

U.S. West Texas Intermediary (WTI) crude was up 28 cents, or 0.4 percent, at $66.08 a barrel.

Performance by the Organization of the Petroleum Exporting Countries (OPEC) rose in January from an eight-month low as important output from Nigeria and Saudi Arabia offset a further slant in Venezuela and strong compliance with a supply reduction pact, a Reuters inspection showed.

OPEC pumped 32.4 million barrels per day (bpd) in January, the take the measure of found, up 100,000 bpd from December. Last month’s total was modified down by 110,000 bpd to the lowest since April 2017.

Even so, adherence by creators included in the deal to curb supply rose to 138 percent from 137 percent in December, the inspection found, suggesting commitment is not wavering even as oil prices hit their weightiest level since 2014.

“It underscores the commitment of the cartel, and their Russian fellows, to keep a floor under the oil price,” said Greg McKenna, chief merchandise strategist at futures brokerage AxiTrader.

That is drawing investors’ woolly away from the rise in U.S. production.U.S. crude output surpassed 10 million bpd in November for the primary time since 1970, the Energy Information Administration said this week.

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