Crude prices rise, hold above $50 after Russian comments
U.S. oil rose on Friday, hovering above the $50 a barrel threshold after Russia reiterated its commitment to contribute to a global output freeze, although a stronger U.S. dollar limited the commodity’s gains.
U.S. crude futures for December delivery were up 0.36% at $50.81 a barrel, not far from Wednesday’s four-month high of $51.94 a barrel.
On the ICE Futures Exchange in London, the December Brent contract climbed 0.56% to trade at $51.67 a barrel.
Crude prices strengthened after Russian Energy Minister Alexander Novak said on Friday that an oil production freeze deal was necessary to support prices and that he would make proposals to his Saudi Arabian counterpart this weekend.
The Organization of the Petroleum Exporting Countries is set to hold a meeting on November 30 to further discuss the details of a global output freeze.
Late last month, OPEC reached an agreement to limit production to a range of 32.5 million to 33.0 million barrels per day in talks held on the sidelines of an energy conference in Algeria.
However, market analysts have been skeptical of the deal, pondering how such a plan would be implemented.
But the commodity’s gains were expected to remain limited as expectations for 2016 U.S. rate hike continued to support the U.S. dollar.
New York Fed President William Dudley said on Wednesday that the U.S. central bank will likely raise interest rates later this year if the economy remains on its current trajectory.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.24% at a fresh seven-month high of 98.53.
Oil prices typically weaken when the U.S. currency strengthens as the dollar-priced commodity becomes more expensive for holders of other currencies.