Oil prices fell, on Friday, in volatile trading, but it achieved its first weekly gain in five weeks, supported by the possibility of the “OPEC +” group agreeing to reduce crude production when it meets on the fifth of this October.
Brent crude futures for November, which expired on Friday, fell 53 cents, or 0.6%, to $87.96 a barrel. The most active December futures contract fell $2.07 to $85.11 a barrel.
US West Texas Intermediate crude futures fell $1.74, or 2.1%, to $79.49 a barrel upon settlement.
Brent and West Texas Intermediate each rose by more than a dollar earlier in the session, but fell back on news that OPEC oil production rose in September to its highest level since 2020, exceeding the increase pledged by the producing countries for this month.
Brent and West Texas Intermediate crude rose 2% and 1% on a weekly basis, to record their first weekly rise since August, following hitting their lowest levels in 9 months this week.
Oil prices rose, supported by the dollar’s decline earlier in the week from its highest levels in 20 years. The decline of the dollar makes oil denominated in the US currency cheaper for holders of other currencies, which improves demand.
The market had received support from the possibility of the Organization of Petroleum Exporting Countries (OPEC) and its allies cutting production quotas at their meeting to be held on the fifth of October.
Analysts expect production cuts as demand concerns related to a possible global economic recession and higher interest rates weighed on crude oil prices.
(Archyde.com)
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