Oil prices rose on Friday in the hope that delivery cuts will be agreed at the OPEC meeting on December…
Oil prices rose on Friday in the hope that delivery cuts will be agreed at the OPEC meeting on December 6, but failed to reclaim the latest losses on over-supply-related issues that have shaken more than one-fifth of Brent’s raw value since the beginning of October .
Brent was up 85 cents at $ 67.47 per barrel at 0929 GMT. It has recovered in three sessions since it struck an eight-month low on Tuesday but is still on course for a weekly loss of about 4 percent.
US. The West Texas Intermediate (WTI) futures rose 55 cents to $ 57.01 per barrel after its steepest one-day loss for more than three years on Tuesday.
With WTI set for a weekly loss of about 5.3 percent, both benchmarks are ready to chalk up its sixth consecutive weekly drop.
“The trend is down ̵
1; stick to it,” said PVM’s technical analyst Robin Bieber.
The prices were supported mainly by the expectation that the organization of the Petroleum Exporting Countries (OPEC) would start the source soon and feared a repeat of the 2014 pace.
Some analysts said that an extended rally is possible with support from the US sanctions against Iranian oil when the current exemption expires, as well as lower Venezuelan production and uncertainty over Libyan production.
“We are likely to have at least 1 million barrels of less raw product,” said Harry Tchilinguirian, Global Commander of Commodity Market Strategy at BNP Paribas, to the Reuters Global Oil Forum.
Tchilinguirian said he would not be surprised if Brent hit $ 80 a barrel this year.
OPEC’s de facto leader, Saudi Arabia, wants the cartel to reduce production by about 1.4 million barrels per day (bpd), about 1.5 percent of global supply, told Reuters this week.
The Saudis would prefer Russia to participate, but Russia has not yet committed itself to any renewed joint action.
Morgan Stanley warned that a cutback from the Middle East-dominated group might not have the desired effect.
“The most important oil price markings – Brent and WTI – are both light sweet crude oils and reflect this glut”, said the US bank.
“OPEC production slices are usually carried out by removing medium and heavier barrels from the market, but it does not take up an abundance of light sweet.”
Although OPEC believes it is a stocking action, US crude oil production reached 11.7 million bpd last week, according to the US Energy Information Administration (EIA).
Record production helped US crude oil stores to their largest weekly build in almost two years.
“Oil bulls, including us, have surrendered and we no longer see oil easing at $ 95 a barrel next year,” said Bank of America Merrill Lynch in a note.