Brent crude surges above $65, buoyed by output cuts

LONDON :

Brent crude oil climbed above $65 a barrel to its highest this year as Opec-led supply cuts and this week’s announcement of a higher than expected cut by Saudi Arabia encouraged investors. The international oil benchmark reached $65.20 by 1310 GMT on Friday, the 63 cent gain equating to a rise of about 1%. Brent approached near threemonth highs and was set for a gain of nearly 5% on the week. US West Texas Intermediate crude futures were also up about 1%, rising 53 cents to $54.94. The Organization of the Petroleum Exporting Countries (Opec) and allies led by Russia started voluntary production cuts last month, aiming to tighten the market. Top exporter and de facto Opec leader Saudi Arabia said on Tuesday it would cut more than half a million bpd more in March than the deal called for.

COMPILED FROM AGENCIES