Oil prices fell on Friday in choppy trading, but they rose for the first time this week in five weeks thanks to the prospect of an agreement between OPEC and its allies to reduce petroleum production when they meet on October 5th.
The price of a barrel of November-dated Brent crude futures, which expire today, Friday, dropped by 53 cents, or 0.6%, to $87. 96. The most actively traded December contract decreased $2. 07 to $85. 11 per barrel.
US West Texas Intermediate oil futures dropped $1.7, or 2.1%, to $79 on the day.
Upon settlement, a barrel costs 49.
Before the news that OPEC oil production increased in September to its highest level since 2020 and surpassed the increase promised by producing countries for this month, Brent and West Texas Intermediate each increased by more than a dollar during the course of the trading session, but they then lost ground.
After reaching their lowest levels in nine months this week, Brent and West Texas Intermediate crude gained 2% and 1% respectively on a weekly basis to post their first weekly gains since August.
The dollar’s slide earlier in the week from its highest levels in 20 years aided the increase in oil prices. Oil priced in US dollars is now more affordable for holders of foreign currencies, which boosts demand.
The likelihood that the Organization of Petroleum Exporting Countries (OPEC) and its allies would reduce production quotas at their meeting on October 5 had bolstered the market.
Because rising interest rates and worries about demand connected to a potential global economic slump have put pressure on crude oil prices, analysts anticipate supply decreases.
West Texas Intermediate and Brent prices both experienced major drops of 23% and 25%, respectively, at the end of the third quarter.
Despite weekly advances, oil prices are declining, while there is a chance that OPEC+ would cut production.
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