Futures on US West Texas Intermediate Crude Oil were set to register their first gain in five weeks, as the US Dollar eased from 20-year highs and there is a possibility that OPEC+ members may agree to reduce oil production at their meeting on October 5th.
“A deteriorating crude demand outlook won’t allow oil to rally until energy traders are confident that OPEC+ will slash output at the October 5th meeting,” Edward Moya, senior analyst at OANDA, wrote in an investor note.
“The weakness with crude prices is somewhat limited as the dollar softens going into quarter-end.”
According to a report by Reuters, citing unnamed sources, OPEC+ members have begun discussing a production cut ahead of their meeting next week.
A source with knowledge of the matter said Russia could propose a production cut of up to 1 million barrels per day.
“In August, OPEC+ production was estimated at around 3.37 million barrels per day below target production levels. So in reality, any cut in supply will likely be smaller than whatever figure the group announces,” ING Economics wrote in a client note.
As of 8:17 GMT on Friday WTI Crude Oil Futures were gaining 1.50% to trade at $82.45 per barrel. Earlier this week the black liquid went down as low as $76.25 per barrel, which has been its weakest price level since January 4th ($75.70 per barrel).
WTI Crude Oil Futures for delivery in November were set to register a 4.71% gain for the week and a 7.93% loss for the month of September.
At the same time, Brent Oil Futures were gaining 1.53% on the day to trade at $88.51 per barrel. Earlier this week Brent Oil went down as low as $82.44 per barrel, which has been its weakest price level since January 11th ($80.89 per barrel).
Brent Oil Futures for delivery in December were set to register a 2.74% gain for the week and a 7.45% loss for the month of September.