Oil Moves Higher as Brent Crude Tops $60 a Barrel

Oil dips from four-week highs

Oil prices fell on Friday after Brent rallied to just below $60 a barrel the previous session but support from Saudi Arabia's crown prince for extending OPEC-led output cuts created a floor.

U.S. West Texas Intermediate crude CLc1, meanwhile, rose 46 cents, or 2.05 percent, to settle at a more than six-month high of $53.54, its highest close since April.

"There's a lot of emotional momentum building", said Donald Morton, senior vice president at Herbert J. Sims & Co., who oversees an energy-trading desk.

Oil traders should be aware that the holdings of ETFs like USO's underlying portfolio includes front-month WTI future contracts, and the oil futures market is now in a state of contango.

But the upturn will be less welcome for motorists bracing themselves for price rises at the petrol pumps, with household finances already under pressure thanks to the weakness of the pound helping to push inflation to a five-year high.

"It's been a slow train coming", said Mark Benigno, co-director of energy trading at INTL FCStone, but investors have come around to the idea that OPEC's efforts are paying off.

The spread is an incentive for US producers and traders to export domestic oil to higher-priced markets and "that might be here to stay a little longer", Matt Sallee, who helps manage $16 billion in oil-related assets at Tortoise Capital Advisors LLC, said by telephone. Ritterbusch said he expects December Brent to make a run at US$59 by the end of the week.

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It was back in early July 2015 when Brent saw such a healthy price. "We will support anything to stabilise the oil demand and supply", Saudi Arabia's Crown Prince Mohammad bin Salman told Reuters on Thursday when asked whether the kingdom would support extending an agreement to cut supplies until the end of 2018.

Mr. Brennock said the "ingredients are there" for Brent to move higher but that "sustaining it will be a herculean challenge".

The Organization of the Petroleum Exporting Countries is expected to debate extending its production cutting agreement through 2018 at its next official meeting in Vienna on November 30.

The Saudi-dominated Organisation of the Petroleum Exporting Companies (OPEC), plus Russian Federation and nine other producers, have cut output by about 1.8 million barrels a day to try to reduce the supply glut.

But higher United States supply has been balanced by worries over crude exports from the Middle East.

Gasoline futures rose 0.59 cent, or 0.34%, to $1.7565 a gallon.

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