Oil tops 40 ahead of key Doha meet

4/9/2016 6:36:54 PM

(MENAFN- Khaleej Times) Oil prices bounced on Friday with Brent climbing back above $40 as traders digested falling US output before this month's key meeting to discuss a proposed production freeze.

US production fell for the 10th time in 11 weeks to 9.0 million barrels per day in the week through April 1 the lowest level since November 2014 according to data from the US Energy Information Administration.

Commercial crude stockpiles in the world's top oil consumer also dropped indicating stronger demand.

Around 1145 GMT US benchmark West Texas Intermediate (WTI) for delivery in May added $1.39 to $38.65 a barrel.

Brent North Sea crude for June delivery won $1.33 to $40.76 a barrel compared with Thursday's close.

The market had beat a retreat on Thursday following a five percent rally the previous day in reaction to the decline in US inventories.

The US government's Energy Information Administration (EIA) reported on Wednesday that commercial crude inventories slumped 4.9 million barrels in the week ending April 1.

That confounded market expectations for a gain of 2.85 million and followed a 2.3-million-barrel increase the previous week.

The figures helped prices build on healthy gains that came on the back of comments from Kuwait that this month's crucial producers' meeting could yield an agreement to limit output.

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