Oil holds near $50 as investors weigh production agreement
Friday October 21, 2016
December futures were little changed in New York after declining 2.3 percent Thursday. Russia's output could increase to a record next year, Energy Minister Alexander Novak said, adding the plan could be adjusted depending on talks with OPEC. President Vladimir Putin previously pledged his support to efforts by OPEC to limit output. Front-month prices are still heading for a fifth weekly gain after U.S. crude stockpiles dropped to the lowest level since January.
Oil has fluctuated near $50 a barrel amid uncertainty about whether the Organization of Petroleum Exporting Countries will be able to implement an accord to reduce output when they gather at an official meeting in November. An OPEC committee will meet later this month to try to resolve differences over how much individual members should pump. Nigeria said it cut the price of every type of crude it sells in an effort to boost its market share.
No co-operation†is foreseeable between Russia and OPEC, said Eugen Weinberg, head of commodities research at Commerzbank in Frankfurt. It's not in Russia's economic interests.â€
West Texas Intermediate for December delivery was at $50.90 a barrel on the New York Mercantile Exchange, up 27 cents, at 1:06 p.m. in London. The contract fell $1.19 to $50.63 on Thursday. Total volume traded was about 26 percent below the 100-day average. The November future expired Thursday down 2.3 percent at $50.43 a barrel.
Brent for December settlement rose 37 cents to $51.75 a barrel on the London-based ICE Futures Europe exchange. The contract on Thursday declined $1.29 to $51.38. Prices are down 0.9 percent this week. The global benchmark traded at a premium of 86 cents to WTI.