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Oil prices rise more than 2 percent amid broad market optimism

Reuters  |  NEW YORK 

By Stephanie Kelly

NEW YORK (Reuters) - prices rose more than 2 percent on Friday, rebounding from two days of declines as climbed on strong U.S. jobs data, while investors also grew hopeful that a planned meeting between U.S. and North Korea's could ease geopolitical tensions.

futures rose $1.54 to $65.15 a barrel, a 2.4 percent gain, by 1:20 p.m. EST (1820 GMT).

Intermediate (WTI) crude futures rose $1.63 to $61.75 a barrel, a 2.7 percent gain.

Both Brent and U.S. crude were on track for a weekly percentage gain.

Trump said he was prepared to meet Kim in what would be the first face-to-face encounter between leaders from the two countries and could mark a breakthrough in a standoff over the North's nuclear weapons. Kim also has committed to suspending further nuclear or missile tests. [MKTS/GLOB]

jumped after U.S. payrolls data showed strong job additions in February. The index was last up more than 1 percent, while the index hit a record high, further supporting prices. Crude futures and stock indices have recently moved in tandem.

The jobs report "speaks to strong, underlying economic conditions, and growth, which includes increased demand," said John Kilduff, partner at in New York.

Also bullish for prices, Libya's 70,000 barrels per day stayed shut despite the Facilities Guard saying it had reached a deal to reopen it, according to a

Despite Friday's gains, some analysts are maintaining a bearish view on the sector.

"While this strong connect between and the macro is expected to continue, we are also seeing an increasingly bearish tilt to our short-term fundamental model," Jim Ritterbusch, of advisory firm Ritterbusch & Associates, said in a note.

"With the EIA's estimated weekly production showing renewed upside acceleration, a record production is coming closer to offsetting this year's demand that has generally been stronger than expected."

The EIA said on Tuesday it expects U.S. crude output in the fourth quarter of 2018 to reach an average of 11.17 million bpd, up from the previous forecast a month ago of 11.04 million bpd.

This would make it a bigger than Russia, now ranked No. 1.

U.S. drillers cut four rigs in the week to March 9, bringing the total count down to 796, General Electric Co's services firm said in its closely followed report on Friday.

"Sometimes you're going to have week-to-week variations which are going to be negative, but I wouldn't take too much from any single week," said Stewart Glickman, an analyst at Research in New York.

"The bigger thing is that the three-month average is definitely moving higher."

(Additional reporting by and in London, and Henning Gloystein in Singapore; Editing by and Cynthia Osterman)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Sat, March 10 2018. 00:13 IST