Early Friday trading saw the arrival of international oil prices, which are in route to posting their first weekly gain in five weeks; The price of US West Texas Intermediate crude futures for November delivery increased by 6 cents to 81 at the scheduled meeting on October 5 of next year, supported by the falling US dollar exchange rate and the potential for an agreement to cut petroleum production from the “OPEC Plus” group.
At 00:54 GMT, a barrel of oil was trading for 29 dollars, down 92 cents from the previous session.
The price of November Brent crude futures increased by 2 cents to $88.51 per barrel after falling by 83 cents the previous session. After reaching their lowest levels in nine months during the previous few days, both Brent and West Texas Intermediate are expected to rebound by approximately 3% this week, marking their first weekly gains since August.
Analysts noted that the market seems to have stabilised as a result of the European Union’s restriction on Russian oil imports beginning on December 5.
According to Baden Moore, a commodities analyst at National Australia Bank, “basically, I still think prices are likely to climb… due to harsher sanctions on Russia, smaller global oil stockpiles, and reduced US Strategic Petroleum Reserve supply.”
I anticipate that OPEC is in a strong position to regulate supplies to balance risks associated to demand, he continued.
Three sources told Reuters that before their meeting on Wednesday, senior members of the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia known as “OPEC Plus” started talking about output cutbacks.
A person with knowledge of the situation said last week that Russia could suggest a reduction of up to 1 million barrels per day and that the dollar’s decline from a 20-year high last week also helped to raise oil prices.
Demand for the commodity increases as a result of purchasers holding foreign currencies being able to purchase dollar-denominated oil at a lower price.
Considering how stable today’s global oil prices are given the dollar’s drop
About Author
