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MTECHTIPS;-Oil up $1 on OPEC output cuts, China demand forecast

MTECHTIPS;-Oil up $1 on OPEC output cuts, China demand forecast

MTECHTIPS- Oil prices rose more than $1 a barrel on Thursday on reports key OPEC members were starting to cut production as promised and on forecasts of strong demand growth in China. Brent crude (LCOc1) rose $1.20 a barrel to a high of $56.30 before easing slightly to trade around $56.20 by 1330 GMT (8:30 a.m. ET). U.S. light crude (CLc1) was up 95 cents at $53.20. The Organization of the Petroleum Exporting Countries agreed in November to cut oil production to try to reduce a global supply glut that has depressed prices for more than two years. Several OPEC members appear to be implementing the deal. “All the focus is now on OPEC compliance, which seems to be moving ahead as planned,” said Barney Rothschild, chief commodities analyst at SEB Markets in Oslo. Saudi Arabian Energy Minister Khalid al-Falih said on Thursday the OPEC deal would accelerate the re balancing of the global oil market and that prices would respond later this year. “The market first of all is extremely healthy,” Falih told a conference in Abu Dhabi, adding that global demand for oil would grow by well over 1 million barrels per day (bpd) in 2017 and the market would tighten in two to three years. Kuwaiti Oil Minister Essam Al-Marabou told the conference Kuwait had already cut its oil output by more than it promised under the OPEC deal, without giving further details. Iraq Oil Minister Jabar Ali al-Luaibi told reporters Iraq was “hoping for a better price”. Iraq had reduced its oil exports by 170,000 bpd and was cutting them by a further 40,000 bpd this week, he said

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