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Oil prices hit their highest levels in nearly a year on Friday, hitting a weekly increase of 8%, supported by Saudi Arabia’s pledge to cut production and strong gains on major exchanges.
Brent crude was set at $ 55.99 a barrel, up $ 1.16, or 3%, during Friday trading, and a weekly increase of 8.1%.
US West Texas Intermediate crude stood at $ 52.24 a barrel, up $ 1.41, or 2.8%, also the highest level since late February. West Texas Intermediate posted a weekly gain of 7.7%.
Saudi Arabia pledged last week to voluntarily cut oil production by one million barrels per day in February and March, at a time when most OPEC + producers are keeping production stable, coinciding with new lockdown measures.
The Kingdom, the Organization of the Petroleum Exporting Countries’ largest exporter, was at odds with some other producers who wanted to increase production to prevent U.S. shale oil companies from gaining more market share.
Eventually, a deal was struck to allow Russia and others to increase production as Saudi Arabia cut production.
Baker Hughes Energy Services reported that the number of U.S. oil rigs in service increased for the seventh week in a row, rising from eight to 275 this week, reaching its highest level since May.
Analysts said oil prices could see a correction in the coming months if demand for fuel remains constrained by the pandemic.
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