Oil rallies to around $60

Brent crude oil rose to around $60 a barrel Friday, rallying from near a 5-1/2-year low as investors squared books ahead of the year-end festive break after six months of falling prices. Oil prices were on track for a fourth straight week of declines after OPEC members last month decided against cutting production despite a huge global overhang of supply.
Brent and the US crude oil benchmark have almost halved in value since June and many investors expect further falls unless supply tightens or demand picks up.
Brent for February LCOc1 was up 80 cents a barrel at $60.07 by 7:20am EST. The contract settled down $1.91 on Thursday, after trading as high as $63.70 a barrel. US crude CLc1 was up 80 cents at $54.91.
Tamas Varga, oil analyst at London brokerage PVM Oil Associates, said some investors were covering short sales and preparing to enter the holidays without too much exposure after months of volatile trade, according to a news agency.