Oil price up nearly 1% as Opec defers extending output cuts

new york - Major producers said they may wait until January before deciding whether to extend output curbs beyond the first quarter

Oil prices ended nearly one per cent higher on Friday, close to their highest levels in months, as major producers meeting in Vienna said they may wait until January before deciding whether to extend output curbs beyond the first quarter.

"I believe that January is the earliest date when we can actually, credibly speak about the state of the market," Russian Energy Minister Alexander Novak said after the Organisation of the Petroleum Exporting Countries and other major producers finished meeting.

Other ministers said a decision on extending cuts could be taken in November when Opec holds its next formal meeting.

Jim Ritterbusch of Ritterbusch & Associates in Chicago said delaying a decision allows producers "to leave some arrows in their quiver to throw something bullish at the market at their November meeting" if necessary.

He said Brent futures got an additional boost in late trade when Nigeria's oil minister said in Vienna that his country, which Opec had exempted from the output cuts, was actually pumping less crude than its agreed cap.

Brent crude rose 43 cents, or 0.8 per cent, to settle at $56.86. US West Texas Intermediate crude settled at $50.66 a barrel, up 11 cents or 0.2 per cent, within a few cents of its May peak.

For the week, Brent posted a gain of 2.2 per cent, while WTI was up 1.5 per cent. - Reuters