{"id":1727,"date":"2022-09-30T17:10:40","date_gmt":"2022-09-30T17:10:40","guid":{"rendered":"http:\/\/roydadnaft.ir\/English\/?p=1727"},"modified":"2022-09-30T17:10:44","modified_gmt":"2022-09-30T17:10:44","slug":"oil-falls-but-heads-for-weekly-gain-as-opec-considers-output-cut","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/1727\/","title":{"rendered":"Oil falls but heads for weekly gain as OPEC+ considers output cut"},"content":{"rendered":"
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Oil prices edged lower on Friday but were on track for their first weekly gain in five on Friday, underpinned by the possibility that OPEC+ will agree to cut crude output when it meets on Oct. 5.<\/strong><\/p>\n\n\n\n

Brent crude futures for November, which expire on Friday, fell by 20 cents, or 0.2%, to $88.29 a barrel by 10:43 a.m. ET (1543 GMT). The more active December contract was down 31 cents at $86.88.<\/p>\n\n\n\n

U.S. West Texas Intermediate (WTI) crude futures fell 4 cents, or 0.9%, to $81.18.<\/p>\n\n\n\n

Both contracts rose by more than $1 earlier in the session but dropped on news that OPEC\u2019s oil output rose in September to its highest since 2020, surpassing a pledged hike for the month, according to Reuters survey on Friday.<\/p>\n\n\n\n

\u201cThere is definitely some profit taking from the gains we saw earlier in the week. $80 is sort of the pivot point these days,\u201d said John Kilduff, partner at Again Capital LLC in New York.<\/p>\n\n\n\n

\u201cIncreased worries about financial stability in the UK and, and potentially spreading, is undermining the demand outlook once again,\u201d Kilduff added.<\/p>\n\n\n\n

While the dollar has dropped from 20-year highs earlier in the week, it rose with early U.S. trading. A stronger greenback makes dollar-denominated oil more expensive for buyers holding other currencies, reducing demand for the commodity.<\/p>\n\n\n\n

\u201cPrice swings have become the norm as market players juggle worries over the global economy and the prospect of tightening oil supplies,\u201d said Stephen Brennock of oil broker PVM.<\/p>\n\n\n\n

Brent and WTI are still set for a weekly gain of around 2%. It would be the first weekly rise since August and follows nine-month lows hit this week.<\/p>\n\n\n\n

The market has seen support from the prospect of the Organization of the Petroleum Exporting Countries (OPEC) and its allies considering cutting production quotas by between 500,000 and 1 million barrels per day (bpd) at their Oct. 5 meeting.<\/p>\n\n\n\n

\u201cA deteriorating crude demand outlook won\u2019t allow oil to rally until energy traders are confident that OPEC+ will slash output,\u201d senior OANDA analyst Edward Moya said.<\/p>\n\n\n\n

Analysts expect a production cut because demand fears linked to a possible global economic slowdown and rising interest rates have weighed on crude prices.<\/p>\n\n\n\n

Brent and WTI prices are likely to finish the third quarter with a chunky 23% decline.<\/p>\n\n\n\n

\u201cExpect oil prices to receive a supportive kick up the backside next week,\u201d PVM\u2019s Brennock said.<\/p>\n\n\n\n

Analysts also expect buying to lift as Russia prepares to annex four Ukrainian regions to Russia on Friday in a move that could force Western nations to strengthen sanctions against Moscow.<\/p>\n

Updated on