Brent oil climbs above $60

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The production cuts have helped drain inventories in the USA and elsewhere in the developed world, but crude prices have still remained stuck below the Saudi target of $60 a barrel.

Ahead of OPEC's policy meeting on November 30, Saudi Arabia and Russian Federation declared their support for extending an OPEC-led deal to cut supplies for another nine months, the Organization of the Petroleum Exporting Countries' secretary general said.

The global benchmark rose as high as $60.53 before 1930 GMT, gaining 2 percent after closing at $59.30 Thursday.

The market rejoiced this week as the oil price hit a new high. The prince said Thursday that "of course" he wanted to prolong the curbs beyond the end of March 2018. West Texas Intermediate, the USA benchmark for the price of oil, was more or less unchanged at $52.21 per barrel.

The positive trend in the oil sector has helped investor confidence in recent weeks, but additional oil from U.S. producers continues to present challenges within this more optimistic scenario.

US crude's gains have lagged the global benchmark amid rising domestic output.

Friday's announcement of ceasefire between Iraqi forces and the Peshmerga from the country's autonomous northern Kurdish region eased some concerns.

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Traders say today's move is driven mostly by currency markets, with the dollar whipsawed by a report that Pres. Trump is leaning towards Jerome Powell as the next Fed chairman.

TransCanada Corp said in a filing on Thursday that it is seeking to raise the temporary discounted spot rate for light crude on its 700,000 barrel-per-day Marketlink pipeline.

At last check, Brent +1% at $59.90/bbl and WTI +1.5% at $53.44/bbl.

While other producers cut output, US production rebounded to 9.5 million bpd in the latest week.

Echoing sentiments about a so-called Goldilocks number, Tamas Varga with London oil broker PVM said in an emailed market report that USA crude oil production numbers may be the governor on market direction.

EIA reported USA crude oil production at 9.5 million barrels per day last week, 1.1 million barrels per day more than the previous week.

Rising U.S. crude production remains an issue for OPEC as it strives to clear a global overhang.

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