Brent crude eases, while lower Canadian supply boosts USA futures

Brent crude eases, while lower Canadian supply boosts USA futures

But in the latter part of 2017 and early in 2018, robust oil demand growth - both in emerging markets and OECD economies - has supported oil prices as much as the cartel's production restraint and the weakening US dollar.

US West Texas Intermediate (WTI) crude futures were at $62.16 a barrel at 1.53am GMT, up 48c or 0.8% from their last settlement.

MCX Crude oil futures ended up 0.82% at Rs 3940 per barrel in last session.

More fundamentally, oil markets got a push from comments by Saudi Arabia, the de-facto leader of the Opec, voicing support for production cuts backed by Opec and other producers including Russian Federation since 2017 in an effort to tighten the market and prop up prices.

The United Arab Emirates energy minister said on late Thursday that oil producers led by Saudi Arabia and Russian Federation aimed to draft an agreement on a long-term alliance by the year end, according to CNBC.

Brent, the global benchmark, has seen its premium pricing over WTI - known as the spread - wither in recent weeks.

The OPEC Secretary-General made the comments while speaking at a conference in Nigeria's capital Abuja.

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So far this year North American gold investors have the led the charge with funds adding 21.5 tonnes worth $940m during the month or three-quarters of the global total.

Analyst William O'Loughlin said OPEC and Russian Federation had assured markets that there will be a systematic augmentation of output once the production cuts deal ends.

"Oil got mild support from gains in Asian equity markets, but has been getting pressure from the rise in US rig count and a slight recovery in the dollar".

Without elaborating on the strategy, he added that a draft framework might be endorsed and signed by all 24 countries before the end of the year.

However, higher U.S. production seems to be trying to restrain OPEC's efforts. "It's more so that WTI has been rising and Brent's kind of stayed doesn't make the exporting of oil out of the attractive", said Rob Thummel, portfolio manager at energy investment manager Tortoise Capital in Kansas City, Missouri.

In the commodity markets, the gold depreciated for third consecutive session after the United States dollar recovered from its three-year low last week.

The American Petroleum Institute said last Tuesday that USA crude inventories rose by 3.9m barrels in the week to Feb 9, to 422.4m. Europe's main indexes were fairly stable on Tuesday but Asian markets closed broadly lower, with the Nikkei 225 closing down 1 percent, South Korea's Kospi falling 1.13 percent and the Shanghai Composite slumping 0.46 percent.