Oil holds steady as producers look at cuts

OIL PRICES were steady on Friday, as investors waited to see whether major producers meeting in Vienna would back an extension to output cuts beyond March next year.

Brent crude futures were up 28 cents at $56.71 a barrel, their highest since March. US West Texas Intermediate (WTI) crude futures were down 2 cents, at $50.53 per barrel.

Some ministers from the Organization of the Petroleum Exporting Countries, Russia and other producers were meeting in Vienna to discuss their deal to cut supplies that runs to March.

OPEC and its allies have been considering extending the deal beyond the end of March.

Russian Energy Minister Alexander Novak said OPEC and other oil producers would not take a decision until January, while other ministers suggested a decision could come this year.

“I believe that January is the earliest date when we can actually, credibly speak about the state of the market,” he said, emphasising OPEC and other major producers needed to work together on a strategy from April 2018.

Oil prices have gained more than 15 per cent in the past three months to trade above $56 a barrel, suggesting the deal is making progress in getting rid of excess supply.

Nigeria and Libya, exempt from the curbs, were also invited to attend the talks.