Weighted oil prices | DN

The Oslo Stock Exchange gave way on the last trading day of the week and was, among other things, penalized by even lower oil prices, with the Brent Friday afternoon price being below $ 70 per barrel for the first time in seven months.

Oil-related stocks have fallen. Equinor and Aker BP recorded a decline of 2.5% and 4.4%, respectively. The oil services index decreased by 3.2%.

Portfolio manager Torbjørn Kjus of Vistin Trading believes the short-term oil market is oversold with the Brent price falling from $ 86 to less than $ 70 a barrel in a matter of weeks.

"When we talk about $ 70 a barrel, it's more likely that prices will be higher than lower prices when we reach the end of the year," he told TDN Direct. Friday.

Torbjørn Kjus draws attention to the pressures of speculators who have strongly surrendered their positions on long positions, thus contributing to the fall.

"The reason they were sold is largely a much larger offer page than what was seen recently," he said.

Kjus says the increased supply comes from Libya, the United States, Saudi Arabia and Russia.

"Generally, Libya and the United States have produced more than expected, while Russia and Saudi Arabia were more infected with expectations," he said.

In addition, it was reported Friday that Iraq was in the process of concluding an agreement with the Kurdish authorities in northern Iraq (KRG) to resume Kirkuk's oil exports through its pipeline. This contributed to the negative evolution of oil prices on Friday. The deal, which can be concluded this month, can boost exports by 400,000 barrels a day, according to the Financial Times.

Next weekend, meet Opec and its staff in Abu Dhabi.

"If OPEC signals no intention to reverse the latest increase in production, oil prices may fall further," writes Commerzbank.

The main index of the Oslo Stock Exchange fell 0.68% to 886.44 points, amounting to NOK 4 405 million.(Conditions)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our business using a link directly to our pages. The copy or any other form of use of all or part of the content may only be done by written authorization or as permitted by law. For other terms please see here.