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By Roslan Khasawneh
SINGAPORE Dec 2 Oil prices extended gains early
on Friday as producer cartel OPEC and Russia agreed to rein in a
global oversupply in crude on Wednesday with analysts now
focusing their attention on implementation of the deal.
"It looks achievable on the face of it, provided the parties
to the latest production cut deal stick to their pledges, which
has historically been somewhat of a sticking point," ANZ bank
said on Friday.
Still, traders said the market was optimistic about
Wednesday's historic OPEC-Russia deal to reduce global output
and help bring the oil market back into balance.
"This is positive news that will make a sustainable
difference to the oil market over the coming months," said Ric
Spooner, chief market strategist at CMC Markets adding that it
wouldn't be surprising to see this momentum continue.
U.S. West Texas Intermediate (WTI) crude futures were
at $51.10 per barrel by 0037 GMT, up 5 cents from their last
Traders said price developments in crude futures over the
coming days would help reflect the market's optimism of the
"WTI has arrived at the peaks from the middle of last year
and again in October," Spooner said, which will be a test for
the market that may give some insight into how positive traders
view this week's agreement.
The Organization of the Petroleum Exporting Countries
(OPEC)agreed on Wednesday its first oil output reduction since
2008 after de-facto leader Saudi Arabia accepted "a big hit" and
dropped a demand that arch-rival Iran also slash output. The
deal also included the group's first coordinated action with
non-OPEC member Russia in 15 years.
(Reporting by Roslan Khasawneh; Editing by Michael Perry)