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Oil futures advanced on Friday as supply tightened and moved to a second consecutive monthly gain as world crude prices remain at their highest level in four years.
"Until OPEC offers a significant supply and the market for pandemics rages around the $ 100 per barrel market, it's difficult." [not] to be clearly bullish, "said Stephen Innes, head of trading at Oanda, in comments sent by email.
November West Texas Intermediate crude
CLX8, + 1.66%
The benchmark rose 95 cents, or 1.3 percent, to $ 73.07 a barrel on the New York Mercantile Exchange. November Brent Global Benchmark
LCOX8, + 1.33%
has reduced 95 cents, or 1.2%, to $ 82.67 per barrel on the ICE Futures Europe Exchange. Brent's November contract expires at Friday's deal.
Over the week, on the basis of first-month contracts, Brent crude is expected to grow 4.9%. According to FactSet, it was on track for a monthly gain of about 6.5% and a quarterly increase of 5.3%. US oil WTI is expected to post a weekly gain of 3.4% and a monthly increase of 3.6%. For the quarter, however, based on month-end contract settlement at the end of June, it was traded at 1.3%.
Prices experienced a sudden and late rise to the highest intraday peaks. Phil Flynn, senior market analyst at Price Futures Group, attributed this increase to technical trading. He also said that prices seemed to find support in reports that China was cutting back on Iranian oil purchases and that the United States did not intend to use its strategic oil reserve to offset the loss of oil. Iranian barrels.
Overall, the market was supported by lower Iranian crude exports ahead of US economic sanctions against the Islamic Republic's oil industry, which are expected to come into effect on Nov. 4, analysts said.
"Iranian oil exports are falling faster than expected," said Giovanni Staunovo, commodity analyst at UBS Wealth Management.
Officials of the state-owned National Iranian Oil Co. said they tentatively forecast crude deliveries to be reduced to about 1.5 million barrels a day, down from 2.3 million barrels a day in June, according to knowledgeable people.
President Donald Trump withdrew the United States from a 2015 international agreement to cut Iran's nuclear program, paving the way for the reimposition of economic sanctions.
At the same time, the oil market has been strengthened because the United States "does not intend to exploit its strategic oil reserves and Saudi Arabia is taking a rather passive approach" to fill the gap left by the Iranian deficit.
The Organization of Petroleum Exporting Countries – de facto under the leadership of Saudi Arabia – and its production allies, including Russia, agreed Sunday in Algiers to abide by the production quotas in force in early 2017. 39, acceleration of production that producers had accepted early in the summer to reduce compliance with the original agreement.
But producers have refused to announce specific projects to increase production, as many market players had anticipated, apparently challenging President Donald Trump's calls for the cartel to increase production to push up the pace of production. barrel Monday above the symbolic threshold of $ 80.
Now, the "rise in oil prices shows little sign of capitulation," said Stephen Brennock, analyst at broker PVM Oil Associates Ltd.
Oil market players look at data from the US Energy Information Administration on Friday on US production in July, as well as weekly data from Baker Hughes on the number of oil drilling in the US – a key barometer of the US market. sector activity, which is due at 1 pm Eastern time.
Elsewhere on Nymex, the essence of October
RBV8, + 1.39%
1.4% at $ 2.11 per gallon and heating oil in October
HOV8, + 1.29%
rose 1.1% to $ 2.39 per gallon. Both contracts should end for the week and the month. The October contracts expire on the settlement date.
November natural gas
NGX18, -1.87%
traded at $ 2.997 per million British thermal power stations, down 1.9%. It climbed nearly 2.6% a day earlier after the IEA reported a lower than expected weekly increase in US fuel reserves. Prices were on track to record gains for the week and month.
-Mark DeCambre contributed to this article
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