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Crude Oil Futures - Weekly Outlook: October 24 - 28

Published 23/10/2016, 08:55 pm
© Reuters.  Oil reverses early losses to settle higher
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Investing.com - Oil futures reversed early losses to end higher on Friday, despite a stronger dollar after Russia’s energy minister said an oil output freeze agreement was necessary to help stabilize the market.

U.S. crude oil settled up 35 cents or 0.69% at $50.98 a barrel from its previous close.

Global benchmark Brent futures were at $51.91 a barrel, rising 53 cents or 1.03%.

Russian Energy Minister Alexander Novak on Friday expressed interest in cooperating with an OPEC production cut and said that he would make proposals to his Saudi Arabian counterpart at a meeting of Gulf Arab oil ministers over the weekend.

The Organization of the Petroleum Exporting Countries announced late last month that it has a preliminary plan to limit production to a range of 32.5 million to 33.0 million barrels per day.

OPEC is expected to complete details of the proposed production cut at its next official meeting on November 30, but without Russia’s participation the plan could fail.

A stronger dollar, which makes oil more expensive in other currencies, pressured oil lower earlier on Friday.

Oil prices had fallen after hitting a one-year high Wednesday in a rally fueled by an unexpectedly large U.S. oil inventory drawdown.

The U.S. Energy Information Administration said oil inventories fell by 5.2 million barrels in the week ended October 14. That was compared to forecasts for a stockpile build of 2.7 million barrels.

Total U.S. crude oil inventories stood at 468.7 million barrels as of last week, the EIA said.

Some analysts feel the pullback indicates that the recent oil price rally is unsustainable, with global production continuing to outpace demand.

In the week ahead, oil traders will focus on U.S. stockpile data on Tuesday and Wednesday for fresh supply-and-demand signals.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.

Tuesday, October 25

The American Petroleum Institute, an industry group, is to publish its weekly report on U.S. oil supplies.

Wednesday, October 26

The U.S. Energy Information Administration is to release weekly data on oil and gasoline stockpiles.

Friday, October 28

Baker Hughes will release weekly data on the U.S. oil rig count.

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