Oil extends rally towards $35 after Iran welcomes output freeze
- 8 years ago
Oil rose towards $35 a barrel on Thursday after Iran welcomed plans by Russia and Saudi Arabia to freeze output and an industry report showed a surprise drop in U.S. inventories.
The gain added to a more than 7 percent surge in the previous session, which came even though analysts said the market had overreacted to Iran's support for the caps and the Russian-Saudi move would not likely reduce the global surplus.
Brent LCOc1 rose 38 cents to $34.88 a barrel by 0959 GMT, having closed 7.2 percent higher in the previous session.
U.S. crude CLc1 gained 69 cents to $31.35.
"It's a continuation of yesterday's move," said Carsten Fritsch, analyst at Commerzbank.
The gain added to a more than 7 percent surge in the previous session, which came even though analysts said the market had overreacted to Iran's support for the caps and the Russian-Saudi move would not likely reduce the global surplus.
Brent LCOc1 rose 38 cents to $34.88 a barrel by 0959 GMT, having closed 7.2 percent higher in the previous session.
U.S. crude CLc1 gained 69 cents to $31.35.
"It's a continuation of yesterday's move," said Carsten Fritsch, analyst at Commerzbank.