Alforat News

Oil prices jump after recording the lowest price in a year

Oil prices jumped on Friday after falling 5% in the previous session, on signs that OPEC production cuts, which will start next month, will be larger than expected.

Oil prices were the lowest in a year.

Brent crude <LCOc1> rose 27 cents, or 0.5 percent, to $ 54.95 a barrel by 08:48 GMT, after falling $ 2.89 in the previous session.

Brent is down 9.4 percent this week.

US WTI crude futures rose 33 cents, or 0.7 percent, to $ 46.22 a barrel. WTI is heading down about 9.5 percent this week.

The Organization of the Petroleum Exporting Countries (OPEC) plans to publish a schedule detailing cuts in the production of its members and allies in an effort to raise crude prices, FAO Secretary-General Mohamed Barkindo said in a letter seen by Reuters on Thursday.

Barkindo said that in order to achieve the target of reducing production by 1.2 million barrels per day, the actual reduction of member states will be 3.02 percent.

That is above 2.5 percent as OPEC seeks to absorb the countries exempted from the cut: Iran, Libya and Venezuela. Source