Commodities

U.S. crude lengthened its gains by ending higher at $48.78, strengthened by a sluggish dollar

US crude

The price of oil remained steady on Friday and appears to be ready to finish the week with moderate gains after last week’s fall by more than 10 percent on worries that production cut by the OPEC was breaking down to trim a global stockpile bulge.

Oil failed to take back the range that overcame all over this year before last week’s debacle. Instead of picking up to $53 per barrel, U.S. crude has remained untouched at around $49 per barrel. Market analysts are assuming that taking back the old levels may be challenging regardless of a significant decline in supplies.

West Texas Intermediate and Brent crude oil leaps in a $2.50 range as traders measured the influence from the Organization of the Petroleum Exporting Countries first oil cut in eight years contrary to the rising U.S. shale oil output.

The probability for an increasing U.S. production is maintaining to grow with weekly rig count data from Barker Hughes showing a growth of 14 drilling rigs located in the United States.

According to Saudi Arabia Minister Khalid al-Falih on Thursday’s report, OPEC and non-OPEC cuts might be prolonged until June only if oil supply remained above in its long-term average. Thus the oil market still failed to revive itself.

Citi Futures analyst in New York Timothy Evans noted that the market view may continuously weaken in the absence of a firm rebound to the current range. Volume declined with less than 125,000 futures contracts on Chicago Mercantile Exchange changing hands after the markets active stretch.

U.S. West Texas Intermediate crude ended up 3 cents to $48.78 per barrel, closing the week’s trading by 0.6 percent higher, while Brent crude edged up 3 cents at $51.77 a barrel.

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