Crude oil price rises as Saudi backs extending output cuts into 2019

NEW YORK — Crude prices rose on Friday, hitting their highest since late January after the Saudi energy minister said the Organization of the Petroleum Exporting Countries (OPEC) and allied producers would need to keep coordinating supply cuts into 2019, and as concerns grew over the future of Iranian crude exports.

Brent crude futures jumped $1.54, or 2.2%, to settle at $70.45 a barrel. For the week, Brent was up about 6.4%, its strongest weekly rise since July.

US West Texas Intermediate ( WTI) crude futures also had their biggest weekly gain since July, at 5.5%. WTI settled at $65.88 a barrel, up $1.58, or 2.5%.

US hedge funds and other money managers raised their bullish bets on WTI in the week to March 20 by 34,488 contracts to 488,438, the US Commodity Futures Trading Commission (CFTC) said.

“There are a number of bullish things to hang the hat of the rally on this week; be it the inventory report ... or the tariff news, or the heightened tensions between Saudi and Iran,” said Matt Smith, director of commodity research at Clipper Data in Louisville, Kentucky.

President Donald Trump’s decision to replace national security adviser H.R. McMaster with John Bolton, who is seen as more hawkish on Iran, also supported prices, Mr. Smith said.

Global stock markets fell as investors worried about a trade stand- off between the US and China. Trade jitters could also hit oil markets, but most analysts said other bullish factors outweighed them for now.

US energy companies added four oil rigs in the week to March 23 General Electric Co.’s Baker Hughes energy services firm reported. That brought the total number of rigs to 804, the highest in three years.

While US production keeps rising, the OPEC and allied producers have curbed output. Saudi Energy Minister Khalid al-Falih told Reuters the curbs, instituted in January 2017, would need to continue into 2019 to reduce global inventories. —