Oil Prices Rise on Eve of Weekend, Investors Anticipate OPEC+ Production Cuts: Closing Price Report

2023-11-10 21:03:14
Closing price: Oil prices, in decline for three weeks, rose again on Friday on the eve of the weekend, investors protecting themselves from the risks of the conflict in the Middle East and the market anticipating a further extension of OPEC+ production cuts .The barrel of Brent BRENT Brent, or North Sea crude, is a variation of crude oil serving as a benchmark in Europe, listed on the InterContinentalExchange (ICE), a stock exchange specializing in energy trading. It became the first international standard for setting oil prices. from the North Sea for delivery in January gained 1.77% to 81.43 dollars.

Its American equivalent, the barrel of West Texas Intermediate (WTI WTI West Texas Intermediate (WTI), also called Texas Light Sweet, is a variation of crude oil that serves as a standard in setting the price of crude and as a raw material for oil futures contracts with the Nymex (New York Mercantile Exchange). ), the stock exchange specializing in energy.) for delivery in December, climbed 1.88% to $77.17.

“Before the weekend, with what is happening in the Middle East, investors are hedging because they cannot negotiate” and buying back oil, explained John Kilduff of Again Capital.

“The market was oversold earlier in the week and there were statements from the Saudi oil minister on Thursday which remind us that OPEC+ will weigh” on supply, added the analyst.

Faced with the drop in prices, Abdel-Aziz Ben Salman estimated that “speculators are the problem, not demand. People say that demand is low, but that is an illusion.”

Words which reinforce expectations of new action by Saudi Arabia, leader of OPEC, on its production and by extension that of the cartel.

The next ministerial meeting of OPEC+ members is scheduled for November 26 in Vienna, headquarters of the alliance.

Saudi Arabia and Russia reaffirmed last weekend that they would maintain their production and export cuts until the end of the year, i.e. 300,000 barrels per day of supply of oil and petroleum products. for Russia and a production cut of one million barrels per day for Saudi Arabia.

For DNB analysts, this is a “moderate recovery” after the strong sales of the last two weeks, during which the two global crude benchmarks fell by 10%.