Oil hovers around $77 on Opec output restraint

Oil hovered around $77 a barrel on Friday, close to this week’s all-time high, as continued output restraint by Opec raised concern over tighter fuel supplies this winter.

US oil rose 12 cents to $76.98 by 1300 GMT after rising 33 cents on Thursday. Prices hit a record $78.77 on Wednesday, but fell sharply on signs of improved US refinery operations.

London Brent rose 4 cents to $75.80.

“People are concerned about overall crude and product stocks globally, as demand’s still strong,” said Gerard Rigby of Fuel First Consulting in Sydney.
“Plus there are funds buying, keeping prices bullish.”

Top consumer the United States is worried that as refiners crank up, crude stocks will drain rapidly and tighten supplies.

US Energy Secretary Sam Bodman on Thursday warned that oil prices have placed the world’s largest economy in a “danger zone.”

He urged Opec to raise output when it meets in September.

TradeArabia