Oil price steadies around $34, Friday

Oil price was steady around $34 per barrel, Friday, as hopes of a deal by major exporters to cut production faded slightly.

Crude prices were still set to end the week sharply higher as many investors think a deal to reduce the massive oversupply that has sent prices tumbling is possible.

Brent futures LCOc1 have jumped by around a quarter since hitting an intra-day low of $27.10 a barrel on January 20. It hit a high on Thursday of $35.84.

Brent was down 4 cents to $33.85 a barrel by 1102 GMT on Friday, after gaining 79 cents, or 2.4 percent, on Thursday.

U.S. crude CLc1 was up 7 cents to $33.29 a barrel, having settled up 92 cents, or 2.9 percent, at $33.22 on Thursday.

Russia’s Deputy Prime Minister Arkady Dvorkovich said, Friday, that Russian output could decline as a result of lower investment, but the state would not intervene to balance the market.

That appeared to pour cold water on possible joint OPEC and non-OPEC production cuts mentioned by Russian Energy Minister Alexander Novak on Thursday.

Brent futures rallied as much as 8.2 percent after Russia said on Thursday that top OPEC producer Saudi Arabia had proposed oil production cuts of up to 5 percent.

Figures from Iran underlined the fact that there is no end in sight to the glut in the market unless there is a cut in production by major exporters.

Iran’s oil exports are set to rise more than a fifth in January and February from last year’s daily average, data from a source with knowledge of its loading schedules shows, revealing how Tehran is ramping up sales after the lifting of sanctions.