Oil market conditions: WTI oil closed down $1.89.

2023-12-01 23:46:58

West Texas crude oil (WTI) contracts in New York closed down more than 2% on Friday (Dec. 1) following adjusting to fluctuations this week. Meanwhile, investors are still keeping an eye on the situation of the latest round of oil production cuts in the OPEC+ group. and are concerned regarding stagnant manufacturing activity around the world. This may affect oil demand.

The WTI crude oil contract will be delivered in January. fell $1.89 or 2.49% to close at $74.07/barrel. and dropped more than 1.6% this week.

The Brent crude oil contract (BRENT) will be delivered in February. fell $1.98 or 2.45% to close at $78.88/barrel. and dropped approximately 1.9% this week.

OPEC+ agreed on Thursday to cut oil production by regarding 2.2 million barrels per day in the first quarter of next year. The total cuts include the current voluntary cuts by Saudi Arabia and Russia of 1.3 million barrels per day.

OPEC+, which produces more than 40% of the world’s oil, is focusing on production cuts. This is because oil prices dropped from around $98 a barrel in late September. Amid concerns regarding weaker economic growth in 2024

The US Institute for Supply Management (ISM) said on Friday that The US manufacturing index held steady at 46.7 in November, falling short of analysts’ expectations of 47.6. The index remains below the 50 level, indicating contraction in the US manufacturing sector. This is the 13th consecutive month of contraction.

Various surveys indicate that global manufacturing activity remained weak in November. due to poor demand

Baker Company Hughes, which provides energy services, said on Friday that U.S. oil rig count rose 5 to 505 this week. This is the highest level since September.

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