Oil Breaks Losing Streak as OPEC Negotiations Continue

by Bloomberg | Mia Gindis and Alex Longley
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas

Oil snapped a three-session losing streak as OPEC+ members continued negotiations over output levels and a Federal Reserve official signaled the central bank’s rate-hiking campaign may be complete.

West Texas Intermediate rose 2.2% to settle above $76 as the production cartel worked to resolve the deadlock over oil-output quotas for some African nations. The stalemate may not be resolved before the group’s scheduled meeting, possibly requiring further delay, one delegate said. Meanwhile in Washington, Fed Governor Christopher Waller said in prepared remarks that he’s “increasingly confident” that monetary policy is tight enough to reduce inflation. The dollar also weakened after Waller’s comments, making commodities priced in the currency more appealing. 

Crude futures have moved into a broad holding pattern ahead of the OPEC+ meeting planned for Thursday, with traders awaiting a decision on next year’s output levels. Among the particular hurdles are production quotas for African members Nigeria and Angola, which have frequently underproduced in recent years.

Oil gave back about 50 cents in the roughly two hours ahead of the market close. “Nobody wants to go home with a position,” said Robert Yawger, director of the energy futures division at Mizuho Securities USA. The move emphasizes traders’ enduring uncertainty over whether Saudi Arabia will extend production cuts as initially expected, he added. 

The group is heading into the meeting with prices having dropped by about a fifth since late September due to plentiful supplies and concerns about the global economy. The relative weakness has fueled expectations that the group will embark on deeper supply cuts.

Prices:

• WTI for January delivery increased 2.1% to settle at $76.41 a barrel in New York.
• Brent for January settlement rose 2.1% to settle at $81.68 a barrel.

Away from the OPEC+ meeting, supplies from Kazakhstan are at risk after a massive storm swept through the Black Sea and interrupted loadings at the port that handles the country’s crude shipments. The nation’s largest oil producer said it could halve output Tuesday to the equivalent of about 300,000 barrels a day.

by Bloomberg | Mia Gindis and Alex Longley
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas