Iran and Iraq were determined to boost production, and were unlikely to come together with Saudi Arabia to cut OPEC output. The Saudis have made no official statement on a deal.
"This is a rally on false hopes, unfortunately"
Other analysts said oil prices may have found a bottom and could rally as high as $45 by year-end as non-OPEC supply is reduced and global demand improves.
U.S. oil production fell in November for the second straight month, the Energy Information Administration said.
U.S. shale producers, who have helped add to the glut, have slashed 2016 capital spending plans more than expected, with one saying prices would need to rise more than 20 percent to turn a profit.
Meanwhile the U.S. oil drilling rig count fell for the sixth straight week with more cuts seen, oil services company Baker Hughes Inc said.
"With more energy companies announcing cuts and OPEC contemplating a cut, it looks like oil is forming a bottom," said Phil Flynn, an analyst at Price Futures Group in Chicago.
"Now the question becomes how high can they go. The charts look like a test near $40 is on the cards."
http://www.cnbc.com/2016/01/28/us-crude-extends-rise-on-hopes-of-supply-cuts-to-tackle-glut.html
"This is a rally on false hopes, unfortunately"
Other analysts said oil prices may have found a bottom and could rally as high as $45 by year-end as non-OPEC supply is reduced and global demand improves.
U.S. oil production fell in November for the second straight month, the Energy Information Administration said.
U.S. shale producers, who have helped add to the glut, have slashed 2016 capital spending plans more than expected, with one saying prices would need to rise more than 20 percent to turn a profit.
Meanwhile the U.S. oil drilling rig count fell for the sixth straight week with more cuts seen, oil services company Baker Hughes Inc said.
"With more energy companies announcing cuts and OPEC contemplating a cut, it looks like oil is forming a bottom," said Phil Flynn, an analyst at Price Futures Group in Chicago.
"Now the question becomes how high can they go. The charts look like a test near $40 is on the cards."
http://www.cnbc.com/2016/01/28/us-crude-extends-rise-on-hopes-of-supply-cuts-to-tackle-glut.html