Jakarta (Benchmark News) – Crude oil prices closed higher after Saudi Arabia said OPEC and other countries are currently in an effort to achieve a reduction in production promised.
West Texas Intermediate oil for March delivery closed rose 2% or US $1.05 to US $52,42 per barrel on the New York Mercantile Exchange.
Meanwhile, Brent oil for March delivery rose US $1.33 or 2.5% to US $55,49 a barrel on the ICE Futures Europe exchange, based in London.
As reported by Bloomberg, the Energy Minister of Saudi Arabia, Khalid Al-Falih, told Al Arabiya television that Arabia has cut production up to 1.5 million barrels a day throughout this month.
Meanwhile, representatives from OPEC and several other major oil producers will begin arriving in Vienna for their first meeting to monitor the agreement of trimming production.
“There is hope that something positive will come out of the meeting this weekend,” said Mark Watkins, a regional investment manager Utah from U.S. Bank Private Client Group, was quoted as saying Bloomberg, Saturday (21/1/2017).
“If compliance with the deal turns out better than expected, the price could break through the US $55,” she continued.
Ministers from Saudi Arabia, Kuwait, Algeria and Venezuela will meet with partners from countries such as non-OPEC Russia and Oman to see if 24 countries in such agreements to follow up on their promises to reduce the combined production amounted to 1.8 million barrels per day for six months in advance…(Red).