Oil steadied after the biggest decline in three weeks on Friday as Kuwait aimed to reach a deal with Saudi Arabia that will restore crude output along their border, and U.S. shale explorers boosted drilling.
February futures held above $60 a barrel in New York after falling 1.2% on Friday, the steepest pullback since Nov. 29. The Kuwait-Saudi shared neutral zone, which has been shut for at least four years due to disputes between the two countries, can produce as much as 500,000 barrels a day. U.S. explorers last week increased drilling by the most in almost two years, according to data from Baker Hughes Co., boosting the supply outlook.
West Texas Intermediate for February delivery fell 21 cents to $60.23 a barrel on the New York Mercantile Exchange as of 10:19 a.m. London time. The contract declined 74 cents to settle at $60.44 on Friday.
Brent for February settlement fell 12 cents to $66.02 a barrel on the ICE (NYSE:ICE) Futures Europe Exchange, after losing 40 cents to close at $66.14 on Friday. The global benchmark crude traded at a $5.79 premium to WTI.
Source : Bloomberg