Published: Mon, November 18, 2019
Markets | By Otis Pena

Crude oil prices under pressure as OPEC fails to curb supply

Crude oil prices under pressure as OPEC fails to curb supply

The barrel of West Texas Intermediate gained more than 1.5% to close the week with modest gains at $57.75.

WTI closed the week at 57.72 US dollars a barrel on the New York Mercantile Exchange, while Brent crude for January finished the week at 63.30 dollars a barrel on the London ICE Futures Exchange.

Oil rose on Friday as comments from a top US official raised optimism for a U.S.

USA energy firms this week reduced the number of oil rigs operating for a fourth week in a row.

Data released on Thursday also showed weekly USA crude stockpiles grew by 2.2 million barrels, the Energy Information Administration (EIA) said, exceeding the 1.649 million-barrel rise forecast by analysts in a Reuters poll.

According to Baker Hughes data, the total oil and gas rig count dropped to 806.

Their existing production deal runs until March.

The slowing global economy continued to be a major headwind for crude oil.

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Later this week, investors will be paying close attention to the Energy Information Administration's (EIA) weekly oil market report, which last week revealed that crude oil production in the U.S. rose to a record high of 12.8 million bpd.

The new US production - and the country's new status as an exporter - has significant implications on global trade and politics.

The major influence was the renewed speculation that the USA and China may be about to do a trade deal - or at least the first part of a deal.

Brent crude rose above $63 for the first time in more than seven weeks despite a bearish International Energy Agency (IEA) 2019 outlook that was published shortly before the monthly report from the IEA. According to its November Monthly Oil Market Report (MOMR), the OPEC forecast that the global economic growth remains unchanged at 3.0 percent for 2019 and 2020.

Russia expects to increase its crude oil exports by around 400,000 bpd-500,000 bpd to more than 5.6 million bpd within five years, Energy Minister Alexander Novak said in an article in Russian-language magazine Energy Policy.

While US supply rose by 145,000 bpd in October, the IEA said, a slowdown in activity that started earlier this year looks set to continue as companies prioritise capital discipline.

OPEC and its allies are expected to discuss output policy at a meeting on December 5-6 in Vienna.

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