Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Oil set for weekly loss ahead of OPEC+ meeting

Oil set for weekly loss ahead of OPEC+ meeting

By Nicole Jao

NEW YORK (Reuters) -Oil prices fell on Friday and were set for a weekly loss as investors awaited an OPEC+ meeting on Sunday that will determine the fate of the producer group’s output cuts.

Brent futures for July delivery were down 32 cents, or 0.4%, to $81.54 a barrel by 11:53 a.m. EDT (1553 GMT), while the more liquid August contract was down 99 cents, or 1.2%, at $80.89. U.S. West Texas Intermediate (WTI) crude futures fell $1.11, or 1.4%, at $76.8.

Brent is on track for a weekly decline of 0.7%, with WTI on course for a 1.2% loss.

“It’s the trepidation ahead of the OPEC meeting over the weekend,” said Matt Smith, lead analyst at Kpler, referencing the potential for the group to do something unexpected. “It’s widely expected that they’ll roll over the cuts,” he added.

Markets are awaiting the OPEC+ meeting on Sunday, with the producer group working on a complex deal that would allow it to extend some of its deep oil production cuts into 2025, three sources familiar with OPEC+ discussions told Reuters.

“OPEC+ is likely to stay in pre-emptive market management mode to keep contango away and prevent oil prices from spiralling to higher levels,” said Mukesh Sahdev, an analyst at Rystad Energy.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!

By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.

U.S. crude production rose in March to its highest level this year, data from the U.S. Energy Information Administration (EIA) showed on Friday, while fuel product supplied, a proxy for demand, fell 0.4% to 19.9 million barrels per day.

The oil market has been under pressure in recent weeks over the prospect of borrowing costs staying higher for longer, which ties down funds and can curb oil demand.

Both oil benchmarks were on course for their worst monthly declines since December after dropping in the previous session on a surprise build in U.S. fuel inventories.

“U.S. summer travel season kicked off with Memorial Day weekend, with initial indications showing strong driving and flying activity — but fuel use looks more muted, implying efficiency gains,” Citi analysts wrote in a note.

Oil prices rose briefly after U.S. government data on Friday showed U.S. inflation tracked sideways in April, strengthening traders’ bets that the Fed would likely deliver a long-awaited rate cut in September.

Euro zone inflation rose more than expected in May, Eurostat data showed. The increase is unlikely to deter the European Central Bank from cutting borrowing costs next week, but it could slow or halt the rate cutting cycle in the coming months.​

(Reporting by Nicole Jao in New York, Robert Harvey in London, Deep Vakil in Bengaluru, Georgina McCartney in Houston and Colleen Howe in Beijing; additional reporting by Natalie Grover; editing by David Goodman, Nick Macfie and Paul Simao)

Recent Post: