Oil prices remained on Friday in quiet trade with the United States Thanksgiving holiday underway. Also, shareholders awaited a meeting of OPEC and its partners next week. The meeting may result in the extension of an output cut deal to support the market.
Brent crude settled down 5 cents at $63.82 a barrel. It dropped 0.3% on Thursday.
U.S. West Texas Intermediate increased by 1 cent at $58.12 a barrel. The agreement gained 0.2% in the recent session, with many United States traders already away from their Thanksgiving break.
The Organization of the Petroleum Exporting Countries and its allies will have their meeting next week. It is one of the most watch things of investors. Also, Russia will be joining the meeting.
The Asia market strategist at AxiTrader, Stephen Innes, says some clarity is beginning to emerge surrounding the OPEC meeting. Also, all parties concerned will try to enforce stricter compliance with the existing deal.
OPEC group has been restraining output from supporting prices. Besides, analysts anticipate the deal to be extended as the United States output keeps hitting records.
Russian oil firms proposed not to change their production quotas that are part of the agreement that runs until end-March. It put pressure on OPEC to avoid any major change in the policy when the group meets in Vienna.
Innes added risk-neutral is an excellent spot to be ahead of the weekend as there is a ton of headline risk that could upset the apple cart.
China prompted the U.S. that it would take firm countermeasures in response to U.S. bill backing anti-government protesters in Hong Kong.
Shareholders said any move by China might delay the phase one agreement with the U.S. to end their trade war. The truce held back growth in global economies and the consumption of oil.
Oil Prices Fall in Quiet Day, Set for Weekly Gain
Oil prices dropped in Asia but are set for a weekly gain along with a significant OPEC, and its allies meet next week. Also, trading volume reduced due to the United States Thanksgiving break.
A Bloomberg survey presented OPEC, and its partners are expected to continue the current supply cut agreement. However, a more profound reduction is impossible to happen, according to the survey.
OPEC and its allies will meet in Vienna from Dec. 5 to Dec. 6 to discuss on policy going forward.
The United States Crude Oil WTI Futures fell 0.2% to $58. Despite the loss today, prices increased by 0.4% this week and profit by about 7% in November.
Moreover, International Brent Oil Futures decreased by 0.5% to $62.98.
The U.S.-China trade front tensions intensified after President Donald Trump interim two legislations that back the anti-government protesters in Hong Kong into law. China repeated its accusations of the move and said it would take firm countermeasures in response, but China has not made any action so far.
The news grew doubt on the potential initial trade deal between the United States and China, which are the world’s most significant oil imports.