Crude oil prices up by 5 percent as OPEC draws closer to cutting production

Crude oil prices on Friday went up by 5 percent, as more Middle Eastern producers agree with OPEC's decision to cut oil production inorder to drain global fuel inventories and support the market.

Brent oil which had falling below $60 in early trades rose to $63.32 by 1.35PM GMT while U.S. light crude rose to a high of $54.11 a barrel before slipping to around $53.90.

With the Organization of the Petroleum Exporting Countries (OPEC) yet to reach an agreement with other non-OPEC producer --especially Russia-- on Thursday, prices fell almost 3 percent.

Iran have agreed to reduce oil output by around 0.8 million bpd from 2019 after finding a compromise with rival Saudi Arabia on Friday.

Russia's energy minister Alexander Novak, flew to Moscow from Vienna to discuss the issue with President Putin on Thursday and returned on Friday.

A Russian Energy Ministry source said Moscow was ready to contribute a cut of around 200,000 bpd and sources said other non-OPEC producers could contribute a further 200,000 bpd of output cuts, bringing an overall cut to 1.2 million bpd.

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