Analysts fear new OPEC cuts go too far

Crude oil prices rose on Friday after the Organization of Petroleum Exporting Countries decided to cut oil production by another 500,000 barrels per day. The cuts will not take effect until February 1. Some analysts saw the cut as overdone, with Barclays Capital saying that the new cut holds the risk of tightening the market too much.

Brent crude February contracts added 27 cents by late afternoon in London, to $63.16 per barrel. The increase took Brent’s gains to 1.5 percent on the week. January delivery West Texas Intermediate crude was 30 cents higher to $62.81 per barrel in late morning trade on the New York Mercantile Exchange, a gain of over 1 percent for the week.