UPDATE 3-Oil rises towards $65 on Saudi commitment to curb output, weak dollar

From Reuters - February 15, 2018

LONDON (Reuters) - Oil rose towards $65 barrel on Thursday, supported by Saudi Arabias comment that it would rather see an undersupplied market than end an OPEC-led deal to withhold production too soon, and by a weak U.S. dollar.

Saudi Energy Minister Khalid al-Falih said on Wednesday the Organization of the Petroleum Exporting Countries would do better to leave the market tight than end the deal on cutting output too early. Saudi Arabia is OPECs top producer.

Brent crude LCOc1, the global benchmark, rose 32 cents to$64.68 as of 0943 GMT, extending the previous sessions gain of $1.64. U.S. crude CLc1 was up 58 cents at $61.18.

Khalid al-Falih gave his strongest hint yet that exiting the current supply agreement is unlikely to be on the agenda this year, said Tamas Varga of oil broker PVM.

Oil also gained as the U.S. dollar weakened, falling to a 15-month low against the yen. A weaker dollar makes oil and other dollar-denominated commodities cheaper for holders of other currencies, potentially boosting demand.

It seems that al-Falih felt this comment was necessary to stabilize oil prices, said Commerzbank analyst Carsten Fritschof the Saudi ministers preference for a tighter market than an early boost in production.


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