OIL PRICE: ABOVE $62
REUTERS, BLOOMBERG - Oil prices rose on Friday but were still on track for a week of losses due to concerns about oversupply, as signs of rising U.S. output were compounded by doubts that Russia would support an OPEC deal to extend curbs on production.
Benchmark Brent crude oil LCOc1 was up 66 cents at $62.04 a barrel by 1400 GMT, recovering some ground after five sessions of losses.
U.S. light crude hit a three-day high, rising more than $1 before easing back to $56.08, 94 cents up on the day.
"An end-of-week rebound is helping the energy complex claw back some of its recent losses though both crude markers are still on track for their first weekly decline in six," oil brokerage PVM said on Friday.
A 5,000-barrel oil leak in South Dakota - that led TransCanada Corp (TRP.TO) to shut part of its Keystone pipeline system on Thursday - added to the bullish tone, PVM said.
But prices were still on track to fall between 2 and 3 percent since the end of last week, as fears of oversupply in the United States weighed.
Crude oil production in the U.S. hit a record of 9.65 million barrels per day (bpd) this month, meaning U.S. output has risen by almost 15 percent since mid-2016.
The International Energy Agency said on Thursday that the United States would account for 80 percent of the global increase in oil production over the next 10 years.
"Let's assume that U.S. oil production continues its upward trajectory. They could very well be at 10 million bpd by the end of 2017," said Matt Stanley, a fuel broker at Freight Investor Services (FIS) in Dubai.
Signs this week of rising output in the United States have dampened the impact of a deal restricting output agreed by the Organization of the Petroleum Exporting Countries (OPEC), Russia and several other producers.
Its curbs on oil output had propped up prices, taking Brent above $64 last week to highs not seen since 2015.
"Upside potential is being capped by oversupply concerns fueled by the surge in U.S. crude production," PVM said.
The agreement expires in March and was expected to be extended at OPEC's next meeting on Nov. 30. But signs that Russian support for the deal may be wavering have injected uncertainty and undermined the recent rally.
U.S. investment bank Jefferies said Russian backing for formalizing an extension appeared "questionable, even if only to defer the decision" to the first quarter of 2018.
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REUTERS - Brent LCOc1 futures fell 43 cents, or 0.5 percent, to $79.14 a barrel by 0218 GMT, after climbing 35 cents on Tuesday. Last week, the global benchmark hit $80.50 a barrel, the highest since November 2014. U.S. West Texas Intermediate (WTI) crude CLc1 futures eased 25 cents, or 0.4 percent, to $71.95 a barrel, having climbed on Tuesday to $72.83 a barrel, the highest since November 2014.
FT - Most oil majors can now cover dividends and capital expenditure at prices around $50 per barrel, meaning that, at $80, they make a healthy surplus.
EIA - The United States remained the world's top producer of petroleum and natural gas hydrocarbons in 2017, reaching a record high. The United States has been the world's top producer of natural gas since 2009, when U.S. natural gas production surpassed that of Russia, and the world's top producer of petroleum hydrocarbons since 2013, when U.S. production exceeded Saudi Arabia’s. Since 2008, U.S. petroleum and natural gas production has increased by nearly 60%.
PLATTS - China became the largest contributor to global LNG consumption growth in 2017. It surpassed South Korea as the world's second largest LNG importer and its share of global LNG demand is expected to converge with that of Japan by 2030.