Oil rebounds on hopes of OPEC-led output cut, but oversupply fears persist

Oil prices edged up marginally on Friday on expectations that the Organization of the Petroleum Exporting Countries (OPEC) and its allies could agree to curb oil output when they meet next month.

By 09:10 pm Riyadh local time, Brent Crude futures were up 0.53 percent to $66.97 a barrel, while WTI crude futures were up by 0.41 percent to $56.69 a barrel.

However, oversupply concerns continue following the latest U.S. Energy Information Administration (EIA) data.

For the week ending November 9, the EIA reported a rise in crude oil inventory of 10.3 million barrels.

“Nymex crude oil futures prices are higher on a corrective bounce after hitting an 11-month low of $54.75 earlier this week,” noted Jim Wyckoff, Senior Analyst, Kitco.com in his daily commentary o Friday.

“Oil is responding in a positive manner to the important $55 support level, trying to carve a bottom around this area, but we still need to be careful and see how the week ends for the black gold,” said Konstantinos Anthis, Head of Research at ADS Securities.