Oil companies on the supply cut the conversation; always ready for the sixth weekly loss

Oil climbed on Friday hoping that supply cuts would be agreed at the OPEC meeting on Dec. 6, but failed to recoup the recent oversupply losses that further reduced oil supply. a fifth the level of Brent crude since early October.

Brent was up 85 cents to 67.47 dollars a barrel at 09:29 GMT. He has been recovering for three sessions since his eight-month low on Tuesday, but is still on the verge of losing about 4% a week.

WTI (West Texas Intermediate) futures in the US rose 55 cents to $ 57.01 a barrel after their biggest one-day loss in more than three years on Tuesday.

With a weekly loss of WTI of around 5.3%, both benchmarks are about to mark their sixth consecutive weekly decline.

"The trend is downward," said Robin Bieber, technical analyst at PVM.

Prices were mainly buoyed by expectations that the Organization of Petroleum Exporting Countries (OPEC) would begin to retain supplies soon, fearing a repeat of the 2014 price defeat.

Some analysts have said that long-term rallying is possible thanks to the support of US sanctions on Iranian oil when the current derogations expire, as well as the decline in Venezuelan production and uncertainty about Libyan production.

"We will probably have by December a million barrels a day in less crude exports," said Harry Tchilinguirian, Global Head of Commodity Markets Strategy at BNP Paribas, at Reuters Global Oil Forum .

Tchilinguirian said that he would not be surprised that Brent is reaching $ 80 a barrel this year.

Saudi Arabia, de facto leader of OPEC, wants the cartel to reduce its production by about 1.4 million barrels a day, or about 1.5% of the supply. worldwide, sources told Reuters this week.

The Saudis would ideally have the participation of Russia, but it has yet promised no renewed joint action.

Morgan Stanley warned that a reduction in the group dominated by the Middle East might not have the desired effect.

"The main benchmark oil prices – Brent and WTI – are both light and sweet crudes and reflect this overabundance," the US bank said.

"OPEC production cuts are generally achieved by removing medium and heavier drums from the market, but that does not solve the problem of excess supply of" light sweet "."

While OPEC plans to hold back supply, crude oil production in the US hit another record last week at 11.7 million bpd, according to the Energy Information Administration (EIA).

Record production helped US crude oil stocks reach their highest weekly accumulation in almost two years.

"The bulls, including us, have surrendered and we can not see oil going up to $ 95 a barrel next year," Bank of America Merrill Lynch said in a note.