By Sarah McFarlane
Oil prices consolidated gains on Friday having soared over the past week after top exporter Saudi Arabia detained hundreds of individuals in a corruption investigation.
Brent crude, the global oil benchmark, rose 0.3% to $64.12 a barrel on London's ICE Futures exchange. On the New York Mercantile Exchange, West Texas Intermediate futures were up 0.1% at $57.21 a barrel.
Saudi Arabia has detained 201 individuals including princes, businessmen and government officials after a three-year investigation estimated $100 billion of state funds had been embezzled. The actions helped push oil prices to more than two-year highs this week.
"Saudi Arabia is the second largest crude producer after Russia, it's the largest exporter and it's the country with the largest spare capacity, so obviously if in such an important oil nation something happens which you didn't expect at all, you start to price in a risk premium," said Giovanni Staunovo, analyst at UBS Wealth Management.
This follows a recent rise in geopolitical risks in other oil producers including Venezuela and Iraq, Mr. Staunovo said.
Analysts said that investors were already pricing in an extension to ongoing production cuts from major producers working in concert with the Organization of the Petroleum Exporting Countries.
The group is due to meet on Nov. 30 when members are expected to discuss a potential nine-month extension to cuts implemented from January to help drain the global glut of oil supply. The current deal is due to expire in March 2018.
"The market is still convinced that OPEC will succeed in tightening the market to a sufficient extent by extending its production cuts," said Commerzbank in a daily note.
Any outcome from the meeting which is less than a nine-month extension could trigger a downward correction in prices, analysts warned.
Nymex reformulated gasoline blendstock--the benchmark gasoline contract--rose 0.2% to $1.82 a gallon. ICE gas oil changed hands at $570.25 a metric ton, up $1.25 from the previous settlement.
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