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Crude jumps 5%, but oversupply still damps outlook

February 12, 2016

Crude oil prices jumped more than 5 percent on Friday after comments by an OPEC energy minister sparked hopes of a coordinated production cut, yet analysts said such a move remained unlikely and that oversupply would persist.

International benchmark Brent crude was trading at $31.63 per barrel at 0409 GMT, up $1.57, or 5.22 percent, from its last settlement.

Reuters market analyst Wang Tao said a technical analysis of Fibonacci retracements showed that “Brent is expected to test a resistance at $32.72 per barrel.”

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