Investing.com - Crude oil prices were up slightly in Asia on Friday as investors awaited more clarity of the possibility of talks among major producers to cut output.
Also ahead in the U.S. is rig count data from Baker Hughes.
On the New York Mercantile Exchange, WTI crude for March delivery rose 0.05% to $31.73 a barrel. Brent fell 0.35% to $34.34 a barrel. Markets in Asia will be thin next week as Chine heads out for a week-long Lunar New Year holiday.
Overnight, crude futures saw a choppy day of trading, as investors continued to gauge the likelihood of a potential extraordinary OPEC meeting later this month aimed at curbing a glut of oversupply on energy markets throughout the world.
Volatility remained high, as U.S. crude futures closed by more than 1% in a positive or negative direction for the 13th consecutive session. In 2016, there have only been five sessions where WTI crude has closed below 1% from its previous day's settlement level.
On the Intercontinental Exchange (ICE), Brent crude for April delivery wavered between $34.16 and $35.79 a barrel, before closing at $34.35, down 0.68 or 1.95% on the session. North Sea brent futures have closed lower in three of its last four sessions, following a five-day winning streak that was halted on Monday.
Both the international and U.S. domestic benchmarks of crude surged more than 8% on Wednesday, enjoying their strongest one-day move in nearly two weeks. Still, WTI and brent futures remain near 12-year lows hit earlier last month after a wide range of economic sanctions were dropped against Iran, paving the way for the Gulf nation to ramp up it exports in the coming months.
The massive surge on Wednesday was triggered by reports that Venezuela oil minister Eulogio Del Pino held talks with officials in Iran earlier in the day in an effort to plan an emergency meeting between OPEC and non-OPEC members before the end of February. The two OPEC members have received support from Iraq, Algeria, Nigeria and Ecuador to hold the summit, Del Pino told Bloomberg. The six OPEC members could also be joined by non-members from Russia and Oman, Bloomberg reported.
"The idea is to not just hold a meeting, but for all the countries to attend with the intention of reaching agreements,” Del Pino said in a statement. “Current prices are below equilibrium, and that encourages the speculators and market instability.”
Over the last week, oil prices have fluctuated wildly amid varying reports on the possibility that representatives from the 13-member oil cartel could reach an agreement to slash production in order to stem a prolonged downturn in prices.
Crude futures have plummeted approximately 70% since OPEC rattled global markets in November, 2014, by maintaining high production levels in an apparent attempt to crowd out high-cost U.S. shale producers.
The strategy has fueled a lengthy battle between producers in the U.S. and the Saudi Arabia, resulting in a market oversaturated with excessive supply.
Any production cuts by OPEC will require the approval of Saudi Arabia, the world's largest exporter. While numerous reports have surfaced that Saudi Arabia and Russia are considering an agreement in which the two oil producers could cut daily production by as much as 5%, the Saudi kingdom has given no indication that it could be interested in appearing at the emergency meeting.