NEW YORK (Reuters) – Oil changed slightly in a volatile session on Friday, backed by the expectation that the Organization of the Petroleum Exporting Countries would agree to reduce production next month, although prices were set for a weekly decline in worries underlying the excessive offer
DATA SHEET: A worker checks the oil tube key in the Imilorskoye oil field of the Lukoil company outside the western Siberian city of Kogalym, Russia, on January 25, 2016. REUTERS / Sergei Karpukhin
The king of OPEC, Saudi Arabia, is eager for large producers to reduce production by about 1.4 million barrels per day, about 1.5 percent of global supplies, to support the market. But other producers, including Russia, were reluctant to accept a cut.
Brent raised 20 cents at $ 66.83 or barrel at 12:45 p.m. EDT [1745 GMT]. The global benchmark seemed a third day of profits, as it reached a minimum of eight months on Tuesday, but fell more than 4.7 percent next week.
US crude rose 12 cents to $ 56.58 a barrel after reaching a $ 57.96 higher session and dropping to as low as $ 55.89 a barrel. The contract had its most intense defeat during a day in more than three years on Tuesday. The United States crude is running to fall almost 6 percent a week.
After the sharp fall of Tuesday, the market was due to a slight correction and now it has stabilized, said Tariq Zahir, managing member of the Tyche Capital Advisors in New York.
"A relief rally was in the cards," said Bob Yawger, director of energy futures at Mizuho in New York. OPEC is likely to be stimulated for action as US production continues to rise, he said.
Even so, the earnings of the day were likely to be limited as merchants were cautious about entering the weekend, he said. "It would take a brave soul to go home a lot this weekend taking into account the massacre that we had in the last eight weeks."
The OPEC ministers meet on December 6 in Vienna to decide on the production policy in the next six months in the midst of a growing surplus in world markets.
The gross output of EE. UU. It reached another record last week, at 11.7 million barrels per day, showed government data. Record production contributed to the largest weekly accumulation of American crustacean stocks in almost two years.
An indicator of future production, the weekly data of the Baker Hughes American drill counting, is due at 1 p.m .. [RIG/U]
The United States imposed sanctions on Iran's oil exports this month and Iranian crude oil exports have dropped sharply in recent months, although Washington has rejected the coup by granting some temporary exceptions.
Other oil producers have offset Iranian lost oil and most analysts now see a significant supply surplus with inventory construction, putting pressure on prices.
Fearing a repeat of the 2014 price, OPEC is widely expected to start cutting soon.
This could result in a rapid price rebound, according to some analysts, especially if production goes farther in Venezuela and Libya.
"Probably as of December we had at least 1 million barrels per day (bpd) less than gross exports (Iran)," said Harry Tchilinguirian, global head of merchandise strategy at BNP Paribas, at the Reuters Global Oil Forum.
Tchilinguirian said he would not be surprised if Brent recovered to $ 80 this year.
Also, support prices, Iraq has resumed oil exports from its oil fields in northern Kirkuk on Friday, pumping between 50,000 and 100,000 bpd, a ministry spokesman said. Some analysts expected the volumes to be much larger, more than 300,000 bpd.
Additional reports by Henning Gloystein in Singapore and Christopher Johnson and Shadia Nasralla in London; Editing by Marguerita Choy and Dale Hudson