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Oil up after sell-offs amid optimism about Trump meeting Kim

Reuters  |  LONDON 

By Nasralla and George

LONDON (Reuters) - rose on Friday after two days of sell-offs amid optimism over a planned meeting between North Korean leader Un and U.S.

Kim also pledged to refrain from further nuclear or missile tests, lifting Asian stock markets and pulling along with them.

Brent crude was at $64.62 per barrel at 1424 GMT, up $1.01 from its previous close.

U.S. Intermediate (WTI) crude futures were at $60.95 a barrel, up 83 cents.

Brent even turned what would have been its second consecutive weekly loss into a slight weekly rise of 0.4 percent over the course of Friday. WTI stayed in negative territory for the second week running, falling around 0.4 percent.

Analysts warned after two days of sell-offs that the broader market outlook remained bearish due in large part to rising U.S. inventories and production.

"Our overall short-term view is bearish," said Bjarne Schieldrop, at

Data from the Information Administration showed crude output rising 23 percent since the middle of 2016 to 10.37 million barrels per day (bpd).

Analysts at said they expected U.S. weekly rig count data, due later on Friday, to show further increases, adding pressure on

"After all, it is attractive to drill for at prices above $60," they said in a note.

Thanks largely to shale, the now produces more crude than top OPEC exporter Only pumps more, at almost 11 million bpd.

"It seems only a matter of time before the U.S. becomes the biggest in the world," Hans van Cleef, economist at Dutch ABN Amro, said in a note to investors.

Unlike producers, where output is largely dictated by companies, U.S. producers drill and sell purely based on economics. If prices remain at current levels or rise further, U.S. drillers are profitable and will raise output; if prices stumble, U.S. production will fall.

Elsewhere, Libya's 70,000 barrels per day stayed shut despite the saying it had reached a deal to reopen it, according to a

As much as production, will also depend on demand. Here, there are signs of a slowdown, although much of this could be seasonal as the northern hemisphere winter ends.

(additional reporting by in Singapore; editing by Mark Heinrich)

(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: Fri, March 09 2018. 20:16 IST