Oil prices soar on output-cut expectation

Oil prices jumped about 2 percent on Friday, with global benchmark Brent crude rising above $60 per barrel, on support from Saudi Crown Prince Sheikh Mohammed bin Salman for extending an OPEC-led deal to rein in output. The pact runs to March 2018 and they are considering to extend it.

On Friday, Brent for December settlement jumped 94 cents to $60.24 a barrel on the London-based ICE Futures Europe exchange after touching $60.53, the highest intraday level since July 2015.

This gap has trebled in price terms in the space of 12 weeks, as demand for Brent-linked crudes such as Russian Urals or North Sea Forties has pushed up prices for the Atlantic Basin grades that have helped fill the void created by lower supply from OPEC and its partners.

Italian oil and gas company Eni returned to a profit in the third quarter as crude oil prices nudge upward after OPEC production cuts.

Some of the concern around oil exports from the northern part of Iraq eased after Kurdish authorities offered to suspend their independence referendum and proposed ceasefire.

"So even though the dollar is giving back some of its move, crude may now be trading off of a new driver, the technical breakthrough to a new high".

"The ingredients are there for the current uptrend to take the European crude benchmark above $60 a barrel", said Stephen Brennock, analyst at London brokerage PVM Oil Associates. That sent WTI's discount to global marker Brent WTCLc1-LCOc1 to the widest in a month.

Oil and gas production rose 5 percent to 1.8 million barrels of oil equivalent a day, with a ramp-up in the fourth quarter expected to reach the highest levels in seven years, at 1.9 million barrels of oil equivalent.

"Saudi Arabia yesterday claimed it would like to extend the production freeze until the end of next year".

According to trade flows data from Thomson Reuters Eikon, arrivals of US crude into north west Europe are already running at about 5 million barrels, or a record 200,000 bpd this month, roughly five times what they were this time previous year.

The weekly rig count is an important barometer for the drilling industry and serves as a proxy for oil production and oil services demand.

Hedge funds and other money managers raised their bullish wagers on USA crude futures and options in the week to October 24, the US Commodity Futures Trading Commission (CFTC) said on Friday.

"It's a market we feel is rangebound (for USA crude) in the mid-$40s to mid-$50s".