Oil quotes add about 2% during trading on Friday, recovering after falling the day before.
Meanwhile, prices for both brands could show their biggest weekly decline in four weeks amid fears of a recession in the global economy and the consequences of another lockdown in China, writes Trading Economics.
The price of November futures for Brent on the London ICE Futures exchange by 8:10 a.m. on Friday is $94.22 per barrel, which is $1.86 (2.01%) higher than the closing price of the previous session. As a result of trading on Thursday, these contracts fell by $3.28 (3.4%) to $92.36 per barrel.
The price of futures for WTI oil for October in the electronic trading of the New York Mercantile Exchange (NYMEX) is $88.38 per barrel by this time, which is $1.77 (2.04%) higher than the final value of the previous session. By the close of the market the day before, the cost of these contracts decreased by $2.94 (3.3%) to $86.61 per barrel.
As reported, the finance ministers of the G7 countries at a meeting on Friday plan to approve and outline their plan to set a price limit for Russian oil.
Oil prices are rising on Wednesday, recovering slightly after the collapse the day before.
The cost of October futures for Brent on London’s ICE Futures is $100.01 per barrel by 8:06 a.m. on Wednesday, which is $0.7 (0.7%) higher than at the close of the previous session. As a result of trading on Tuesday, these contracts fell by $5.78 (5.5%) to $99.31 per barrel.
October Brent futures expire at the close of the session on Wednesday. More actively traded November contracts added $0.94 (0.96%) in price, trading at $98.78 per barrel.
The price of futures for WTI oil for October in the electronic trading of the New York Mercantile Exchange (NYMEX) is $92.51 per barrel by this time, which is $0.87 (0.95%) higher than the final value of the previous session. By the close of the market the day before, the cost of these contracts decreased by $5.37 (5.54%) to $91.64 per barrel.
Experts from the OPEC+ technical committee have raised their estimate of the oil surplus in 2022 from 0.8 million bpd to 0.9 million bpd, according to reports prepared for the meeting of the technical committee scheduled for August 31, which Interfax has read.
Based on the reporting, experts downgraded their estimate of oil demand growth in 2022 under the baseline scenario from 3.4 million b/d to 3.1 million b/d, to 100 million b/d; growth in supply – from 5.8 million b/d to 5.6 million b/d to 100.9 million b/d.
Traders, meanwhile, are waiting for the US Department of Energy’s weekly report on commercial stocks of oil, gasoline and distillates in the country, which will be released later on Wednesday.
Experts on average expect oil inventories to fall 1.9 million barrels, gasoline more than 1.3 million barrels and distillates nearly 1.2 million barrels, according to a S&P Global Commodity Insights survey.
Oil prices are rising on Monday, traders are watching the situation in Libya, as well as the progress of negotiations on the Iranian nuclear deal.
Over the weekend, clashes between two armed groups took place in Tripoli, as a result of which more than 20 people were killed, Bloomberg reports. This raised fears that Libya is waiting for another full-scale conflict, as a result of which oil supplies to the world market will be reduced.
Iran, meanwhile, will continue to study US proposals for a nuclear deal until at least September 2, state news agency Nour News reported.
The cost of October futures for Brent oil on the London ICE Futures exchange by 8:15 am CST on Monday is $101.88 per barrel, which is $0.89 (0.88%) higher than the closing price of the previous session. As a result of trading on Friday, these contracts rose by $1.65 (1.7%) to $100.99 per barrel.
The price of futures for WTI oil for October in the electronic trading of the New York Mercantile Exchange (NYMEX) is $94.06 per barrel by this time, which is $1 (1.07%) higher than the final value of the previous session. By the close of the market on Friday, the value of these contracts increased by $0.54 (0.6%) to $93.06 per barrel.
As a result of the past week, Brent has risen in price by 4.4%, WTI – by 2.9%.
“Despite the hawkish stance of the world’s largest central banks, which means further hikes in interest rates and weakening economic growth, oil continues to rise in price as the balance of supply and demand speaks in favor of higher prices,” said James Whistler, managing director of Vanir Global Markets Pte in Singapore. “The possibility of OPEC production cuts remains, as Libya and Congo support the position of Saudi Arabia, while the problem of oil supplies from Kazakhstan also remains,” Bloomberg quoted the expert as saying.
