NEW YORK (Reuters) - U.S. oil prices closed at a 17-month high on Friday in quiet trade ahead of the Christmas and New Year holiday week, even though the gain was small, as the market waits to see how OPEC manages its planned output cuts with Libya expecting to boost production.

The flow of drilling mud is seen in a container while an oilfield worker works on a drilling rig at an oil well operated by Venezuela's state oil company PDVSA, in the oil rich Orinoco belt, near Cabrutica at the state of Anzoategui April 16, 2015. REUTERS/Carlos Garcia Rawlins/File Photo

Despite the 17-month high in U.S. futures, prices were little changed on Friday in a market that closed early for the Christmas holiday.

Brent LCOc1 futures gained 11 cents, or 0.2 percent, to settle at $55.16 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 gained seven cents, or 0.1 percent, to settle at $53.02, its highest close since July 2015.

That topped the previous 17-month high close for WTI set last week by a nickel and was the front-month’s sixth daily gain in a row, its longest winning streak since August.

It also put the WTI contract up for a fifth week in six, gaining about 22 percent since mid November, which traders said was mostly related to the OPEC production cut agreement.

“Friday was a quiet, low volume day with little price movement,” said Phil Davis, managing partner of venture capital fund PSW Investments in Woodland Park, New Jersey, noting WTI gained just enough pennies to set a new 17-month high.

“This is the time for maximum hype in oil. It’s all related to the OPEC deal to cut output,” Davis said, warning the high prices will not last if the market does not see the OPEC cuts over the longer term.

Over the past few weeks, the Organization of Petroleum Exporting Countries and non-OPEC members agreed to lower output by almost 1.8 million barrels per day (bpd) from Jan. 1.

While major OPEC producers including Saudi Arabia and Iraq have told customers that supply will be cut in line with the OPEC deal, Libya and Nigeria are exempt because conflict has already curbed their output.

Libya’s National Oil Corp hopes to add 270,000 bpd to national production over the next three months after announcing on Tuesday the reopening of pipelines leading from two major fields, Sharara and El Feel.

Another factor that analysts said could soon weigh on the oil market was an announcement this week that Saudi Arabia would boost domestic fuel prices as the government reduces its subsidies..

That could reduce internal oil consumption and leave more Saudi barrels for the export market, Tim Evans, Citi Futures’ energy futures specialist, said in a report.</s>There's been little Christmas cheer for oil today, with Brent crude has slipping below $55 a barrel after a stronger US dollar and higher estimated oil output from Libya weighed on the market.

The global benchmark has slipped 0.54 per cent to $54.74 a barrel, while US sweet crude is down 0.59 per cent to $52.64.

Libya's National Oil Corporation hopes to add 270,000 barrels per day (bpd) to national production over the next three months after announcing on Tuesday the reopening of pipelines leading from two major fields in the country, El Feel and Sharara.

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The dollar index steadied today, but remains not far below a 14-year peak of 103.65 reached earlier this week.

When the greenback rises, it makes dollar-denominated commodities such as oil more expensive for holders of other currencies.

An unexpected increase in US crude stocks reported on Wednesday in the Energy Information Agency's weekly supply report also sucked some Christmas cheer out of the market.

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Brent still trading at its highest levels since mid-2015 and has rallied around 20 per cent since November 29, the day before a major Opec deal was announced.

The Organisation of the Petroleum Exporting Countries (Opec) agreed on 30 November to slash production among its 13 members by 1.2m bpd from 1 January for six months.

A later agreement with 11 non-Opec oil producing nations, who agreed to cut production by 558,000 bpd between them over the same period of time, has brought the total production cut to 1.8m bpd.

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Prices are forecast to enter the $60 a barrel territory in the first quarter of next year, when Opec's deals are due to come into effect (on the other hand, French group Engie SA has warned prices could dip as low as $10 a barrel within a decade).</s>Azeri Light crude oil price has fallen on the world markets.

The price of a barrel of Azeri Light crude oil decreased $0.81 to stand at $55.42 on the world markets.</s>LONDON (Reuters) - Oil slipped below $55 a barrel on Friday as a stronger U.S. dollar weighed on commodities and as higher Libyan output threatened to counter some of the supply cuts planned by OPEC and other producers.

Crude is still trading around its highest since mid-2015, supported by a deal by the Organization of the Petroleum Exporting Countries and non-members to lower output by almost 1.8 million barrels per day from Jan. 1.

Brent crude <LCOc1> was down 34 cents at $54.71 a barrel as of 1057 GMT, after rising 1.1 percent on Thursday. It reached $57.89, the highest since July 2015, on Dec. 12. U.S. crude <CLc1> fell 37 cents to $52.58.

"There's some profit-taking after the last session's gains. Oil prices are also weaker due to the stronger dollar," said Jonathan Barratt, chief investment officer at Ayers Alliance in Sydney.

Also weighing on oil was a surprise increase in U.S. crude stocks reported on Wednesday in the government's weekly supply report - and the prospect of sales beginning in January of crude from the U.S. Strategic Petroleum Reserve (SPR).

"Crude failed to maintain gains this week following the unexpected build in U.S. crude stockpiles, which revived the oversupply concerns," said Lukman Otunuga, a research analyst with FXTM.

"With some anxieties still lingering over the compliance side of the unexpected cut agreement, oil could end up extremely volatile with losses expected if production fails to decline."

While major OPEC producers including Saudi Arabia and Iraq have told customers that supply will be cut in line with the OPEC deal, Libya and Nigeria are exempt because conflict has already curbed their output.

Libya's National Oil Corp hopes to add 270,000 bpd to national production over the next three months after announcing on Tuesday the reopening of pipelines leading from two major fields, Sharara and El Feel.

Nonetheless, efforts to restore Libyan output since the North African country's 2011 uprising have been repeatedly stymied and political splits still present a risk to the plan.

The volume of extra oil reaching the market from the SPR could be sizeable. Consultancy Poten & Partners said on Thursday the reserve could be drawn down by some 190 million barrels between 2017 and 2025 if all planned sales went ahead.

The dollar index <.DXY> steadied on Friday not far below a 14-year peak of 103.65 reached earlier this week.

A firmer dollar makes dollar-denominated commodities including oil more expensive for holders of other currencies.</s>The price of oil changed in the world markets.

On NYMEX (New York Mercantile Exchange) cost of the US light crude oil increased $0.46 to stand at $52.95. Price of the Brent crude oil at the London ICE (Intercontinental Exchange Futures) rose $0.59 to trade at $55.05.

The price of a barrel of Azeri Light crude oil decreased $0.12 to stand at $56.23 on the world markets.

Brent crude oil sells for more than $55/ barrels</s>Singapore — Oil slipped below $55 a barrel on Friday as a stronger US dollar weighed on commodities and as higher Libyan output threatened to counter some of the supply cuts planned by the Organisation of the Petroleum Exporting Countries (Opec) and other producers.

Crude is still trading around its highest since mid-2015, supported by a deal by Opec and non-members to lower output by almost 1.8-million barrels per day from January 1.

Brent crude was down 32 cents at $54.73 a barrel in morning trade after rising 1.1% on Thursday. It reached $57.89, the highest since July 2015, on December 12. US crude fell 37 cents to $52.58.

"There is some profit-taking after the last session’s gains. Oil prices are also weaker due to the stronger dollar," said Jonathan Barratt, chief investment officer at Ayers Alliance in Sydney.

While major Opec producers including Saudi Arabia and Iraq have told customers that supply will be cut in line with the Opec deal, Libya and Nigeria are exempt because conflict has already curbed their output.

Libya’s National Oil Corp hopes to add 270,000 bpd to national production in the next three months after announcing on Tuesday the reopening of pipelines leading from two major fields, Sharara and El Feel.

Nonetheless, efforts to restore Libyan output since the North African country’s 2011 uprising have been repeatedly stymied and political splits still present a risk that the plan may not go smoothly.

Also weighing on prices were an unexpected increase in US crude stocks reported on Wednesday in the government’s weekly supply report and the prospect of sales of crude from the US strategic petroleum reserve beginning in January.

New York-based tanker and energy consultancy Poten &Partners on Thursday said the strategic reserve could be drawn down by some 190-million barrels between 2017 and 2025 if all planned sales went ahead.

The dollar index steadied on Friday not far below a 14-year peak of 103.65 reached earlier this week.

A firmer dollar makes dollar-denominated commodities, including oil, more expensive for holders of other currencies.</s>Oil prices, on Thursday, December 22, flipped to small gains at the start of traditional trading hours in the U.S., where traders are still feeling bullish about recent changes in the oil market.

Brent, the global benchmark, rose 68 cents, or 1.3%, to $55.14 a barrel on ICE Futures Europe. Light, sweet crude for February delivery recently gained 63 cents, or 1.2%, to $53.12 a barrel on the New York Mercantile Exchange.

Crude Prices have recorded modest gain at different points, since the Organization of the Petroleum Exporting Countries and other global exporters agreed in November to cut output.

OPEC had agreed last month to cut output by 1.2 million barrels a day, equivalent to around 1% of global supply. A group of big oil producers outside the cartel, including Russia, agreed to join them and scale back their output by another 558,000 barrels a day.

That has kept oil above $50 a barrel for more days this month than any other since July 2015, but many investors also have been skeptical of OPEC. Its spotty record for adhering to production quotas is casting doubt over whether the cuts will fully materialize after they are supposed to start in January.

The number of rigs for U.S. production has been rising steadily since the summer, although the lag between the time it takes to drill a well to seeing full production means that this additional volume has yet to reach the market.</s>Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Crude oil trading range for the day is 3523-3665.Crude oil gained supported by strong U.S. economic data and optimism that crude producers would abide by an agreement to limit output.Libya's NOC confirmed that pipelines leading from Sharara and El Feel fields had reopened, and hoped to add 2.7 Mbpd production over next three months.Oil markets are expected to remain well-supplied despite the planned OPEC and non-OPEC reductions.BUY CRUDE OIL JAN @ 3570 SL 3530 TGT 3608-3640. MCX.</s>Crude oil futures declined by Rs 21 to Rs 3,586 per barrel today after participants cut down bets in tune with a weak trend in Asian trade.

At the Multi Commodity Exchange, crude oil for delivery in January 2017 shed Rs 21 or 0.58 per cent to Rs 3,586 per barrel with a business volume of 2,438 lots.

Oil prices for far-month February delivery moved down by Rs 20 or 0.54 per cent to trade at Rs 3,657 per barrel with a business volume of 33 lots.

Marketmen said the fall in crude oil futures was mostly attributed to trimming of positions at the futures trade in tandem with a weak trend in Asian trade.

Meanwhile, West Texas Intermediate crude oil was down by 31 cents at $52.64, while Brent fell 29 cents to trade at $54.76 a barrel.</s>U.S. crude oil inventories came in unexpectedly high at 485.4M barrels, while refineries operated at 91.5% capacity. Market watchers are also keeping tabs on Libya which is expected to boost production over the next several months.

Oil prices are also facing a headwind with the U.S. Dollar Index at a multi-year high.

WTI crude oil futures to $52.70/bbl at last check. Brent crude to $54.69/bbl.
As new Libyan production comes on line, the world price of crude oil falls below $55 a barrel.