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Brent Hits $60 Per Barrel Following Saudi Remarks

Pump jacks pump oil at an oil field on the shores of the Caspian Sea in Baku, Azerbaijan, October 5, 2017. Picture taken October 5, 2017. REUTERS/Grigory Dukor
Pump jacks pump oil at an oil field on the shores of the Caspian Sea in Baku, Azerbaijan, October 5, 2017. Picture taken October 5, 2017. REUTERS/Grigory Dukor
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Brent Hits $60 Per Barrel Following Saudi Remarks

Pump jacks pump oil at an oil field on the shores of the Caspian Sea in Baku, Azerbaijan, October 5, 2017. Picture taken October 5, 2017. REUTERS/Grigory Dukor
Pump jacks pump oil at an oil field on the shores of the Caspian Sea in Baku, Azerbaijan, October 5, 2017. Picture taken October 5, 2017. REUTERS/Grigory Dukor

Oil prices jumped about 2 percent on Friday, with global benchmark Brent crude rising above $60 per barrel, on support from Saudi Crown Prince Sheikh Mohammed bin Salman for extending an OPEC-led deal to rein in output.

The Organization of the Petroleum Exporting Countries, plus Russia and nine other producers, have cut output by about 1.8 million barrels per day (bpd) to get rid of a supply glut. The pact runs to March 2018 and they are considering to extend it.

The Saudi Crown Prince told Reuters this week he was in favor of extending the term of the agreement.

Russian President Vladimir Putin has also made similar remarks.

"OPEC welcomes the clear guidance from the Crown Prince of Saudi Arabia on the need to achieve stable oil markets and sustain it beyond the first quarter of 2018,” OPEC's Secretary General Mohammad Barkindo told Reuters on Friday.

"Together with the statement expressed by President Putin this clears the fog on the way to Vienna on Nov. 30."

Meanwhile, Exxon Mobil Corp (XOM.N), the world’s largest publicly traded oil producer, posted a higher-than-expected quarterly profit on Friday.

“A 50 percent increase in earnings through solid business performance and higher commodity prices is a step forward in our plan to grow profitability,” Darren Woods, Exxon’s chief executive officer, said in a statement.

Third-quarter net income jumped to $3.97 billion, or 93 cents per share, from $2.65 billion, or 63 cents per share, in the year-ago period. Exxon said Hurricane Harvey dented quarterly earnings by 4 cents per share.

Production rose about 2 percent to 3.9 million barrels of oil equivalent per day.

French oil and gas major Total (TOTF.PA) also reported a 29 percent jump in third-quarter net profit as project ramp-ups and new investments lifted production, joining a list of energy companies benefiting from higher crude prices.

“The group took full advantage of the favorable environment thanks to the performance of its integrated model and its strategy to reduce its breakeven point,” Chief Executive Patrick Pouyanne said in a statement.

Also on Friday Eni (ENI.MI) said it swung to a profit in the quarter.

Total’s net adjusted profit for the quarter hit $2.7 billion, in line with the average of forecasts from analysts polled by Reuters.

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Washington Urges Israel to Extend Cooperation with Palestinian Banks

A West Bank Jewish settlement is seen in the background, while a protestor waves a Palestinian flag during a protest against Israel's separation barrier in the West Bank village of Bilin in 2012. (AP)
A West Bank Jewish settlement is seen in the background, while a protestor waves a Palestinian flag during a protest against Israel's separation barrier in the West Bank village of Bilin in 2012. (AP)
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Washington Urges Israel to Extend Cooperation with Palestinian Banks

A West Bank Jewish settlement is seen in the background, while a protestor waves a Palestinian flag during a protest against Israel's separation barrier in the West Bank village of Bilin in 2012. (AP)
A West Bank Jewish settlement is seen in the background, while a protestor waves a Palestinian flag during a protest against Israel's separation barrier in the West Bank village of Bilin in 2012. (AP)

The United States on Thursday called on Israel to extend its cooperation with Palestinian banks for another year, to avoid blocking vital transactions in the occupied West Bank.

"I am glad that Israel has allowed its banks to continue cooperating with Palestinian banks, but I remain convinced that a one-year extension of the waiver to facilitate this cooperation is needed," US Treasury Secretary Janet Yellen said Thursday, on the sidelines of a meeting of G20 finance ministers in Rio de Janeiro.

In May, Israeli Finance Minister Bezalel Smotrich threatened to cut off a vital banking channel between Israel and the West Bank in response to three European countries recognizing the State of Palestine.

On June 30, however, Smotrich extended a waiver that allows cooperation between Israel's banking system and Palestinian banks in the occupied West Bank for four months, according to Israeli media, according to AFP.

The Times of Israel newspaper reported that the decision on the waiver was made at a cabinet meeting in a "move that saw Israel legalize several West Bank settlement outposts."

The waiver was due to expire at the end of June, and the extension permitted Israeli banks to process payments for salaries and services to the Palestinian Authority in shekels, averting a blow to a Palestinian economy already devastated by the war in Gaza.

The Israeli threat raised serious concerns in the United States, which said at the time it feared "a humanitarian crisis" if banking ties were cut.

According to Washington, these banking channels are key to nearly $8 billion of imports from Israel to the West Bank, including electricity, water, fuel and food.