Oil prices soared on Friday to their highest levels since early February, supported by ongoing production cuts led by OPEC and a surprise drop in crude inventories in the United States highlighted by data released by the Energy Information Administration on Thursday.

The shutdown of the El Feel oilfield in Libya, as well as comments from Saudi Arabia’s energy minister Khalid al-Falih saying he expected oil market inventories to continue declining, also supported prices.

Brent crude futures rose 92 cents to settle at $67.31 a barrel, a 1.4 percent gain. The global benchmark’s session high of $67.37 was its highest since February 7.

West Texas Intermediate (WTI) crude futures rose 78 cents to settle at $63.55 a barrel, trading between $62.33 and $63.73.

In stocks, global markets rose on Friday as well, in line with the rise in oil prices.

Shares on Wall Street performed well, with the Dow Jones Industrial Average rising 1.39 percent, the S&P 500 gaining 1.60 percent and the Nasdaq Composite adding 1.77 percent.

MSCI’s gauge of stocks across the world was 1.14 percent higher at the end of the trading session on Friday. The pan-European FTSEurofirst 300 index rose 0.23 percent and emerging market stocks were up 1.29 percent.

In the Middle East, stock markets were mixed on Thursday.

Dubai’s index edged up 0.03 percent, as blue-chip stock Emaar Properties climbed a further 1.8 percent in its heaviest trading this year. Neighbouring Abu Dhabi’s index dropped by 0.1 percent.

Saudi Arabia's index added 0.3 percent, but Al Jazira Bank closed 0.5 percent lower and Saudi Industrial Export Co fell back 10 percent.

In Qatar, the index dropped 0.3 percent as Qatar Islamic Bank went ex-dividend, tumbling 4.1 percent.

Egypt’s blue-chip index gained 0.5 percent, Kuwait’s index climbed 0.8 percent, while Oman’s index fell 0.3 percent and Bahrain’s index was flat.

In currencies, the dollar rose on Friday as minutes of the Federal Reserve’s January meeting showed policymakers were more confident of the need to keep raising interest rates.

The dollar index rose 0.16 percent against a basket of six major currencies.

Gold prices faced their biggest weekly loss since early December, declining by 1.4 percent for the week.

On Friday, spot gold prices dropped 0.2 percent to $1,328.97 an ounce.

In other news, Egypt’s Supply Minister Ali Moselhi said in a statement on Thursday that the country’s strategic rice reserves are large enough to last until the end of April.

For access to market moving insight, subscribe to the Trading Middle East newsletter by clicking here

Our Standards: The Thomson Reuters Trust Principles

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here. 

© ZAWYA 2018