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 October 5.
Brent crude futures for November, which expired on Friday, fell by 20 cents, or 0.2%, to $88.29 a barrel by 1543 GMT. The more active December contract was down 31 cents at $86.88.
US West Texas Intermediate (WTI) crude futures fell 4 cents, or 0.9%, to $81.18. Both contracts rose by more than $1 earlier in the session but dropped on news that OPEC’s oil output rose in September to its highest since 2020, surpassing a pledged hike for the month, according to Reuters survey on Friday.
“There is definitely some profit taking from the gains we saw earlier in the week. $80 is sort of the pivot point these days,” said John Kilduff, partner at Again Capital LLC in New York.
“Increased worries about financial stability in the UK and, it potentially spreading, is undermining the demand outlook once again,” Kilduff added. While the dollar has dropped from 20-year highs earlier in the week, it rose with early US trading. A stronger greenback makes the dollar-denominated oil more expensive for buyers holding other currencies.
Published in The Express Tribune, October 1st, 2022.
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