Crude oil prices moved higher to start the day on Friday on competing strains from production levels outside of OPEC and sentiment for a market deal.
Crude oil prices opened stronger on Thursday on prospects that members of the Organization of Petroleum Exporting Countries were moving in line behind a production ceiling proposed in Algeria in September. The rally fizzled out, however, after a strengthened U.S. dollar adding to renewed questions about the likelihood of a formal agreement.
OPEC is working to build consensus around a proposal to hold its collective production to around 32.5 million barrels per day, the low end of an offer tabled in September in Algeria. OPEC last reported the combined output from its 14 members was 1.1 million bpd higher than that.
Speaking from the sidelines of an energy summit in Doha, Russian Energy Minister Alexander Novak said a "freeze" was a tool that could pull the market back toward balance, though a production cut would be needed in order to meet the latest terms of OPEC's proposal.
Oil prices were moving higher to start the trading day on Friday, following high volatility during the previous session. The price for Brent crude oil was up about 0.7 percent to start trading at $46.83 per barrel. West Texas Intermediate, the U.S. benchmark price for crude oil, was up 0.5 percent to open in New York at $45.69 per barrel.
OPEC ministers have said cooperation from non-members like Russia may be needed to make any formal agreement stick. Production figures from Norway, meanwhile, show oil production of 1.71 million bpd, 4 percent above October 2015, and 10 percent more than the government expected.
Oil markets are oversupplied. The latest figures from the U.S. Energy Information Administration show U.S. crude oil inventories built up more than 5 million and data from the U.S. Geological Survey show more oil production could be coming out of shale basins in the Lower 48.
Crude oil prices movements could be influenced later in the day when Baker Hughes releases its weekly figures on exploration and production. Any increase in rig activity could indicate confidence is building in the energy sector, but also point to an eventual build in supplies.
