NEW YORK (Feb 10): Oil prices rose nearly 2% on Friday after reports that OPEC members delivered more than 90% of the output cuts they pledged in a landmark deal that took effect in January. The International Energy Agency (IEA) — one of OPEC's six sources — said the cuts in January equated to 90% of the agreed reductions in output, far higher than the initial 60% compliance with a 2009 OPEC deal. The agency also raised global oil demand growth expectations for 2017 to 1.4 million bpd, up 100,000 bpd from its previous estimate. Nevertheless, producers will probably have to extend the production cuts beyond six months if they want to achieve their goal of balancing the oil market. SEB chief commodities analyst Bjarne Schieldrop said he expected 198 new US oil rigs to come into action in 2017, with 51 added already this year.

Source: The Edge Markets February 10, 2017 16:30 UTC