SINGAPORE: Oil markets rose on Friday, supported by OPEC-led supply cuts which are tightening the market as well as by strong demand, but analysts cautioned that the cuts would need to be extended to counter rising US output.
Brent futures, the international benchmark for oil prices, were at $60.86 per barrel at 0524 GMT, up 24 cents, or 0.4 percent, from their last close. Brent has risen by 37 percent since its low in 2017 reached last June.
US West Texas Intermediate (WTI) crude was at $54.83 a barrel, up 29 cents, or 0.5 percent, from the last close. WTI is 30 percent above its 2017-low in June.
The bullish market sentiment has been fueled this year by the Organization of the Petroleum Exporting Countries (OPEC) and other producers, including Russia, to hold back 1.8 million barrels per day (bpd) in oil production to tighten markets.
While supplies are being withheld, oil demand is rising, especially in China, whose roughly 9 million bpd of imports has surpassed the US as the world’s biggest crude importer.
“China’s oil demand growth appears to be accelerating,” US investment bank Jefferies said.
Furthermore, global crude inventories, especially in the US, have drawn down as oil markets have been slightly undersupplied during the past quarters, although the outlook for next year is uncertain.
The pact to withhold supplies runs to March 2018, but there is growing consensus to extend the deal to cover all of next year.
Analysts say that without an extension of the cuts, a supply glut could re-emerge, especially due to rising US production.
“Our oil balance numbers imply a modest global drawdown of inventories in 2017, not nearly enough to reverse the large builds seen from 2014 to 2016. What’s more, our balance points to the resumption of global stock builds in 2018,” said Harry Tchilinguirian of BNP Paribas in a note.
Because of that, he said “we see no other option for OPEC and Russia than to agree to an extension of supply cuts past March 2018.”
Tchilinguirian said rising US output, which has jumped by more than 13 percent since middle of 2016 to 9.6 million bpd, was resulting in increased exports.
The Energy Information Administration (EIA) said this week that the latest US crude oil export figures rose a record 2.1 million bpd.
“With the US oil surplus increasingly exported to Atlantic Basin markets and further ashore to OPEC’s hitherto captive markets in Asia, it may be difficult for Brent to hold on to $60 per barrel in 2018,” Tchilinguirian said.
BNP Paribas said it expected WTI and Brent to average $50 per barrel and $55 per barrel, respectively, in 2018.
Oil up on market rebalancing, but analysts warn OPEC must keep supply cuts
Oil up on market rebalancing, but analysts warn OPEC must keep supply cuts
Major airlines suspend, reroute flights amid US-Israel strikes on Iran
- Saudia says decision taken in line with aviation safety and security standards
- Emirates said it temporarily suspended it's operations out of Dubai
RIYADH: Major international airlines across the Middle East and South Asia have suspended, canceled or rerouted flights following ongoing US-Israel attacks on Iran and the resulting airspace closures, according to official statements issued via X.
Saudia said in an official statement that it had canceled a number of flights due to developments in the region and the closure of airspace.
The airline said the decision was taken in line with aviation safety and security standards, noting that its Emergency Coordination Center is closely monitoring developments with relevant authorities.
Saudia urged passengers to verify the status of their flights before heading to the airport and said guests would be notified of updates through the contact details associated with their bookings.
The carrier added that further information would be announced in a subsequent statement if available.
بيان رسمي من #الخطوط_السعودية pic.twitter.com/CHfjKj9yLX
— Saudia Group | مجموعة السعودية (@SaudiaGroup) February 28, 2026
Air Arabia said its flights were experiencing cancellations, delays or rerouting as a result of the evolving situation and airspace closures.
The airline advised passengers to check the status of their flights before traveling to the airport by visiting its website or contacting its call center.
Customers booked on affected flights will be notified directly, the airline said, adding that further updates would be provided as the situation develops.
Air India announced a broader suspension, stating that “in view of the developing situation in parts of the Middle East, all Air India flights to all destinations in the Middle East have been suspended.”
The airline said it remains committed to maintaining the highest standards of safety for passengers and crew and will continue to assess the safety and security environment for flight operations, adjusting services proactively as required.
Air India said its teams would extend necessary support to passengers and advised customers to check flight status online or contact its 24/7 call center for assistance.
#TravelAdvisory
— Air India (@airindia) February 28, 2026
In view of the developing situation in parts of the Middle East, all Air India flights to all destinations in the Middle East have been suspended. We remain committed to maintaining the highest standards of safety for our passengers and crew. We will continue to…
All flight operations at Dubai International and Dubai World Central – Al Maktoum International are suspended until further notice, according to a post by Dubai Media Office on X.
Dubai-based Emirates reported that regional airspace closures had caused disruption to several of its flights and that the airline had temporarily suspended its operations from its hub Dubai.
The airline said it is actively monitoring the situation, engaging with relevant authorities and adjusting operations in line with the latest developments.
The carrier apologized to affected customers and said it is assisting them with rebooking, refunds or alternative travel arrangements, reiterating that the safety and security of passengers and crew remain its highest priority.
Due to multiple regional airspace closures, Emirates has temporarily suspended operations to and from Dubai.
— Emirates Support (@EmiratesSupport) February 28, 2026
Emirates urges customers to check https://t.co/Ucm3UswfVh and https://t.co/yehFUeWZQq for the latest updates before proceeding to the airport.
We are actively monitoring… pic.twitter.com/SLDC7iNaUN
In a statement, Etihad Airways also confirmed that all flights scheduled to depart Abu Dhabi are suspended until 14:00 UAE time on Sunday, March 1.
It also announced that all flights scheduled to arrive in Abu Dhabi before 14:00 UAE time on Sunday will be cancelled. Services scheduled to arrive after that time are expected to operate, subject to operational conditions.
Qatar Airways confirmed a temporary suspension of flights to and from Doha due to the closure of Qatari airspace.
The airline said it is working closely with government stakeholders and relevant authorities to support impacted passengers and will resume operations once the airspace reopens.
It warned that delays are anticipated when usual operations resume and said additional ground staff have been deployed at Hamad International Airport and other key airports to assist passengers.
Temporary Suspension of Qatar Airways Flights due to Qatari Airspace Closure
— Qatar Airways (@qatarairways) February 28, 2026
Qatar Airways Group confirms the temporary suspension of its flights to, and from, Doha due to the closure of Qatari airspace.
The airline is working closely with government stakeholders and the…
Meanwhile, Al Jazeera reported that British Airways had canceled flights to Tel Aviv and Bahrain, adding to the list of carriers adjusting operations.
Across their statements, airlines consistently cited airspace closures and safety considerations as the primary reasons for suspensions and disruptions, while urging passengers to monitor official channels for updates as the situation continues to evolve.
