Oil headed for its biggest weekly loss in a month as swelling American stockpiles and renewed doubts over a long-term trade deal between the U.S. and China suggested supply will keep outpacing demand.
Futures edged higher in New York on Friday, but are down 4.1% this week. Chinese officials are warning they won’t budge on the thorniest issues and are wary of President Donald Trump’s impulsiveness even as the two sides get close to signing an initial agreement, people familiar with the matter said. U.S. crude inventories rose by more than forecast last week and a JBC Energy report showed Saudi Arabian production rebounded to normal levels in October.
Ample physical oil supplies at a time when the trade war is sapping global economic growth are putting pressure on the Organization of Petroleum Exporting Countries and allies to reduce output further to prop up prices. However, signs that Russia is wary of more cuts, may mean Saudi Arabia and the Gulf states will have to go it alone.
West Texas Intermediate crude for December delivery rose 18 cents, or 0.3%, to $54.36 a barrel on the New York Mercantile Exchange as of 9:50 a.m. in Singapore. The contract lost 1.6% on Thursday, just managing to eke out an 0.2% gain for October.
Brent for January added 7 cents to $59.69 a barrel on the London-based ICE Futures Europe Exchange. The December contract dropped 0.6% as it expired on Thursday. The global benchmark crude traded at a premium of $5.27 to WTI for the same month.
Source : Bloomberg