Oil Prices Rise Despite Third Week of Losses
The Current State of Oil Prices
Oil prices rose on Friday, offering a glimmer of hope after a challenging week. Attention now shifts to the forthcoming OPEC and allies meeting, which could have a significant impact on the market.
Market Performance
By 09:35 ET (13.35 GMT), oil futures were trading 1% higher at $76.52 a barrel, while the contract climbed 1% to $80.84 a barrel. Despite this, both contracts are on track to incur a 5% loss for the week, marking the third consecutive week of substantial declines.
The OPEC Meeting
The upcoming OPEC+ meeting on Nov. 26 holds significant importance. All eyes will be on whether Saudi Arabia will extend a 1 million barrel-per-day voluntary cut set to expire at the end of this year.
Influence of Economic Data
Crude prices suffered this week due to disappointing economic readings from China and the euro zone, as well as hawkish signals from Federal Reserve officials. The dollar’s rebound on renewed expectations of higher U.S. interest rates also contributed to the market’s downturn.
Market Analysis
Analysts at ING believe that the recent sell-off in oil is exaggerated, given that fundamentals remain tight in the short term. However, they note that fundamentals are not as bullish as initially anticipated, with Russian oil exports increasing and weakening refinery margins.
Conclusion
The week concludes with the release of the U.S. oil rig count and data later in the session, adding to the market’s ongoing volatility.
