WASHINGTON (dpa-AFX) - Oil prices surged higher on Friday, as U.S. sanctions on Venezuela's oil exports and a notable drop in OPEC's oil output eased concerns about any excess supply in the market.
According to a survey report from Reuters, OPEC's crude oil production dropped by as much as 890,000 barrels per day in January, from the previous month. That was the largest month-on-month decline since January 2017.
A report from energy services firm Baker Hughes said drillers cut 15 oil rigs in the week to February 1, bringing the total count down to 847, the lowest since May 2018.
A smaller than expected increase in U.S. crude stockpiles last week too helped oil's uptick. Concerns about Chinese economic slowdown and weak Eurozone economy and uncertainty about a quick solution to U.S.-China trade disputes limited oil's upside.
West Texas Intermediate Crude oil futures for March ended up $1.47, or 2.7%, at $55.26 a barrel, the highest settlement price in about seven weeks.
For the week, crude oil futures gained nearly 3%.
Brent Crude futures were hovering around $62.75 this afternoon, gaining $1.91, or 3.1%.
The two-day trade talks between U.S. and Chinese officials ended on Thursday without concrete results, but U.S. President Donald Trump said the trade dispute would hopefully be resolved before the March 1 deadline.
China's manufacturing activity fell at the sharpest pace in nearly three years in January, due to declines in both new work and production, survey data from IHS Markit showed on Friday.
The headline seasonally adjusted Caixin Factory Purchasing Managers' Index, or PMI, fell to 48.3 from 49.7 in December. The latest reading was the lowest since February 2016.
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