Saturday , April 17 2021

oil: petroleum firms in the provision of reduced conversations, still set for the sixth weekly loss

LONDON: Oil rose on Friday in the hope that supply agreements will be agreed at OPEC's meeting on December 6, but recent losses have not recovered over excess supply problems that have sharpened more than a fifth of gross crude since early October.

Brent raised 85 cents to $ 67.47 or barrel at 0929 GMT. It was recovered during three sessions, as it reached a minimum of eight months on Tuesday but is still under way for a weekly loss of about 4 percent.

West Texas UK futures (WTI) rose 55 cents to $ 57.01 a barrel after their biggest one-day fall over three years on Tuesday.

With WTI established for a weekly loss of around 5.3 percent, both benchmarks are prepared to accumulate its sixth consecutive weekly fall.

"The trend has gone down, it continues with her," said technical analyst PVM, Robin Bieber.

Prices were mainly supported by the expectations that the Organization of Petroleum Exporting Countries (OPEC) would begin to retain the supply soon, fearing the recurrence of the 2014 price.

Some analysts said that an extended rally is possible with support from US sanctions. UU. On Iranian oil when current renunciations expire, as well as lower Venezuelan production and, uncertainly, on Libyan production.

"Probably as of December we had at least 1 million barrels per day less than gross exports," said Harry Tchilinguirian, global head of commodity market strategy at BNP Paribas, at the Global Reuters Forum.

Tchilinguirian said he would not be surprised if Brent reached $ 80 a barrel this year.

The de facto leader of OPEC, Saudi Arabia, wants the cartel to reduce production by 1.4 million barrels per day (bpd), about 1.5 percent of global supplies, Reuters sources said today.

The Saudis would have Russia's participation ideal, but Russia will still not commit itself to any renewed joint action.

Morgan Stanley warned that a cut from the Middle East-dominated group might not have the desired effect.

"The main benchmarks of the oil price – Brent and WTI – are clear in light and reflect this problem," said the bank of the United States.

"OPEC production cuts are generally implemented by eliminating medium and heavier barrels in the market, but that does not address the excess supply of sweet products."

While OPEC considers the retention of supplies, oil production in the US. UU It reached another record last week, at 11.7 million bpd, according to the US Energy Information Administration (EIA).

The record production helped the populations of EE. UU to its biggest weekly construction in almost two years.

"Oil bullions, including, capitulated and we do not see oil escalation at $ 95 a barrel next year," Bank of America Merrill Lynch said in a note.

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