The cap talks come before an OPEC+ meeting early next month. Iraq and Saudi Arabia’s oil ministers met on Thursday and said the group could take further measures if required to achieve stability in the market.
Crude has declined this month, overturning the gains made in October after the Organization of Petroleum Exporting Countries and allies agreed to reduce production, with signs of challenges to demand accumulating. In China, the world’s largest oil importer, daily Covid infections hit a record this week, prompting tighter curbs. The Asian nation’s central bank on Friday boosted economic stimulus, announcing plans for a further cut in the amount of cash lenders must hold in reserve.
“Our balances point to slight oversupply until the end of 1Q,” Morgan Stanley analysts including Martijn Rats and Amy Sergeant said in a note to clients. “For now, the oil market is faced with macroeconomic headwinds.”
- Brent for January settlement added 0.6% to $85.87 a barrel at 8:47 a.m. in New York.
- WTI for January delivery was at $78.90 a barrel, 1.2% above the close on Wednesday.
- There was no settlement on Thursday due to Thanksgiving holiday in the US.