* Brent rises 3% in wk;WTI up 7% in biggest weekly gain
since June
* OPEC+ to cut production by an additional 500,000 bpd
* OPEC to shoulder around two thirds of cuts
* Graphic on Aramco IPO: https://tmsnrt.rs/305G4Tv
(Updates with settlement prices)
By Jessica Resnick-Ault
NEW YORK, Dec 6 (Reuters) - Oil prices rose more than 1% on
Friday and posted sharp weekly gains after OPEC and its allies
agreed to deepen output cuts by 500,000 barrels per day in early
2020.
The additional cuts by the Organization of the Petroleum
Exporting Countries and other major producers including Russia -
a grouping known as OPEC+ - will last throughout the first
quarter. The group will meet again in early March for an
extraordinary meeting to set its policy. Brent futures LCOc1 settled 1.6% higher at $64.38 per
barrel and rose about 3% on the week.
West Texas Intermediate oil futures CLc1 rose 1.3% to
$59.20 a barrel. They climbed about 7% on the week, their
biggest rise since June, after the U.S. government data on
Wednesday showed domestic crude stockpiles falling for the first
time in six weeks. EIA/S
The OPEC+ cuts next year are in addition to the group's
previous agreed curbs of 1.2 million bpd and will represent
about 1.7% of global oil output. OPEC will shoulder around two thirds of the additional cuts.
Saudi Energy Minister Prince Abdulaziz bin Salman said the
kingdom, the world's largest oil exporter and OPEC's defacto
leader, would continue a voluntary cut of 400,000 bpd.
He added that after improved compliance from other members,
the actual cut will be effectively 2.1 million bpd. "The Saudis did a good job of setting expectations that they
could have additional cuts," said Bob Yawger, director of
futures at Mizuho in New York.
Fears of a global crude glut were partially allayed by the
suggestions that Saudi Arabia could cut back its own production
further, he said.
Any price gains from the OPEC+ cut are likely to benefit
American producers not party to any supply curbing agreement.
U.S. drillers have been breaking production records even as they
have cut the number of oil rigs in operation for 12 straight
months, boosting the United States to the top world producer
spot. RIG/U
"North American shale supply will continue growing even in
an environment with lower oil prices," Rystad Energy said in a
note.
Higher oil prices are also supporting the initial public
offering of Saudi Arabia's state-owned oil company, Saudi
Aramco, which priced its shares on Thursday at the top of an
indicated range. The sale was the world's biggest IPO, beating Alibaba Group
Holdings' $25 billion listing in 2014, but fell short of a $2
trillion valuation for Aramco sought by Saudi Crown Prince
Mohammed bin Salman.
Foreign investors stayed away and the sale was restricted to
Saudi individuals and regional investors.
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CHART: Brent oil may test support at $62.61 giant Saudi Aramco's IPO png https://tmsnrt.rs/30iWA2M
CHART: U.S. oil may fall to $57.37 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>