Oil prices post weekly gain ahead of OPEC+ meeting

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In this news, we discuss the Oil prices post weekly gain ahead of OPEC+ meeting.

NEW YORK (Reuters) – Oil prices were mixed on Friday but posted a fourth straight week of gains ahead of an OPEC + meeting early next week.

Brent crude futures contracts in January rose 38 cents to $ 48.18 a barrel, while the more active February contract gained 46 cents to $ 48.25.

US West Texas Intermediate (WTI) crude futures fell 18 cents to $ 45.53 a barrel.

Brent rose 7.2% for the week, while WTI gained 8% for the week. Encouraging news about potential COVID-19 vaccines from AstraZeneca and others has raised the markets. However, questions have been raised about AstraZeneca’s ‘vaccine for the world’, with several scientists appearing cautious about the trial results.

“While a successful vaccine deployment should sever the link between infection and mobility, even then global demand for oil will likely not reach its pre-pandemic rate until mid-2022” , JP Morgan said.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, tend to delay the expected increase in oil production next year, three sources close to the OPEC + group said.

OPEC + planned to increase production by 2 million barrels per day (b / d) in January – about 2% of global consumption – after record cuts in supply this year. OPEC + ministers are due to meet from Monday.

“The market expects a limited increase in prices if OPEC + actually does what is expected and changes its planned route, postponing a planned increase in supply from January,” said Bjornar Tonhaugen, head of Rystad Energy’s oil markets.

Informal talks between ministers are expected to take place on Saturday.

The increase in Libyan production is also contributing to concerns about oversupply in the market.

The OPEC member, which is exempt from oil cuts, has added more than 1.1 million bpd of production since early September.

Reporting by Stephanie Kelly in New York; additional reporting by Ahmad Ghaddar in London and Aaron Sheldrick in Tokyo; Edited by Marguerita Choy and Louise Heavens

Original © Thomson Reuters

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