Oil prices edged up for a second day on Friday on expectations that a weekend meeting of the world’s top oil producers would demonstrate compliance to a global output cut deal. International benchmark Brent crude prices were up $1.30, or 2.4 per cent, at $55.46 a barrel at 1419 GMT. U.S. West Texas Intermediate crude oil futures were trading up $1.25, also 2.4 percent, at $52.62 a barrel.
“Prices were pushed down a bit too far and hopes will rise that the OPEC/non-OPEC meeting this weekend will show that these producers actually give some proof that they cut production”, said Hans van Cleef, senior energy economist at ABN Amro.
A weekend meeting in Vienna of members of the Organization of the PetroleumEXPORTING Countries (OPEC), and some producers outside of the group, including Russia, will establish a compliance mechanism.
The meeting is to verify producers are sticking to a deal to reduce output by 1.8 million barrels per day (bpd), OPEC’s secretary general said. Saudi Arabia’s energy minister said on Friday that 1.5 million bpd had already been taken out of the market, adding to signs that the oil market is re-balancing.