(MENAFN- ProactiveInvestors)
Crude oil made its first weekly gain since November after the International Energy Agency lowered forecasts for supplies from outside OPEC and an industry report showed U.S. companies reduced drilling activity.
West Texas Intermediate for February delivery increased US$2.44 on Friday to settle at US$48.69 a barrel on the New York Mercantile Exchange.
Brent for March settlement rose 3.9% to end the session at US$50.17 a barrel on the London-based ICE Futures Europe exchange.
The IEA slashed its forecast for the increase in non-OPEC supply this year by 350000 barrels in a monthly report released on Friday. The collapse in oil prices could help boost demand for OPEC’s own output a sign that the cartel’s tough-love strategy on oil prices is working the IEA said.
It added the slowdown in output growth will lead to a “rebalancing” of currently oversupplied global markets in the second half reviving prices.
Oil fell almost 50% last year the most since the 2008 financial crisis as supplies swelled amid the fastest pace of U.S. production in more than three decades and the Organization of Petroleum Exporting Countries resisted calls to cut output.
Goldman Sachs Group Inc. and Societe Generale SA were among banks to reduce their price forecasts this week.
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