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US oil prices on Friday afternoon traded heavily after briefly offsetting gains, as prices rebounded before the meeting of major oil producers in Algiers over the weekend.
A report suggesting that major producers could further increase production to cover the projected shortfall in Iranian production has briefly lowered prices.
November West Texas crude
CLX8, + 1.09%
on its first full day as a first month contract, it added $ 1.15, or 1.1%, to $ 71.12 a barrel on the New York Mercantile Exchange, but was at its highest level at $ 71.80. The contract envisaged a weekly gain of more than 2%.
November Brent Global Benchmark
LCOX8, + 0.27%
was up 28 cents, or 0.4%, to 78.98 dollars after becoming negative, to 78.23 dollars a barrel on ICE Futures Europe, the contract having increased more than 0.4% over the week.
Lily: US oil sanctions against Iran threaten global supplies, but slowing demand poses real risk
A committee composed of representatives of the Organization of the Petroleum Exporting Countries and some of its external allies plans to meet on 23 September in Algiers. In June, producers agreed to increase production by 1 million barrels per day in order to achieve production closer to the previously agreed ceiling.
According to Reuters, citing a source close to the negotiations, OPEC and non-OPEC member countries are considering a further increase of 500,000 barrels per day to offset the fall in Iranian supplies. .
The speech on the increase in additional production "is a compromise or at least an attempt to appease President Trump," but that will not be enough to offset the loss of supply, said Phil Flynn, senior analyst at Price Futures .
The agreement reached in June to lift production was considered, in part, as a response to US pressure.
Oil prices are rising, spurred in part by President Donald Trump's decision to withdraw from the Iranian nuclear deal and renew sanctions against Tehran, aimed at sharply reducing exports from major producers.
According to the International Energy Agency, Iranian exports fell by around 500,000 barrels a day between April and August.
Thursday, futures have experienced a period of volatility after Trump in a tweet called on OPEC to keep crude oil prices lower.
His tweet followed reports released this week that Saudi Arabia would be comfortable with prices above $ 80 per barrel in the near term.
Saudi Arabia, the de facto leader of OPEC, and Russia, a major full-fledged producer, stepped up production this summer to offset some of the lost Iranian barrels.
However, additional production capacity may be limited, analysts warned.
"It had to be a simple monitoring committee charged with ensuring that the Member States respect the 2016 agreement which reduces production. Instead, it is likely to turn into a meeting that separates slippery production from Iran, "wrote Robert Yawger, director of energy at Mizuho USA, in a note on Friday, referring to the gathering of Algiers.
Meanwhile, Baker Hughes
BHGE, + 0.46%
The United States announced on Friday that the number of US active drills for oil dropped from 1 to 866 for the week. Last week, the report showed a gain of 7%. According to Baker Hughes, the total number of active crews in the United States, which includes oil and gas rigs, decreased from 2 to 1,053.
According to data from the Energy Information Administration, US crude supplies fell for five consecutive weeks. Domestic gasoline inventories fell last week, although distillates, which include fuel oil, rose slightly.
On Nymex Friday, October the gasoline
RBV8, + 0.39%
rose 0.2% to $ 2.018 per gallon, for a weekly increase of 2.4% and heating oil in October
HOV8, + 0.00%
lost 0.1% to $ 2.225 a gallon, always ready for a weekly rise of 0.7%.
October natural gas
NGV18, + 0.03%
traded at $ 2,973 per million British thermal power stations, down 0.1%. For the week, it rebounded from about 7.4%.
US natural gas storage levels remain 18% below the five-year average "with the official start of winter in just over a month," said Robbie Fraser, an industry analyst. raw materials at Schneider Electric. "Next week's storage report is expected to further deepen the deficit as high temperatures boosted demand for electricity production in the eastern half of the country this week."
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