“Oil prices fell slightly in trading on Friday, September 27, ending the week with a significant decrease due to expectations of increased supply in the market.”, — write: www.epravda.com.ua
Oil prices fell slightly in trading on Friday, September 27, ending the week with a significant decrease due to expectations of increased supply in the market.
This is reported by the profile publication enkorr.
The price of November Brent futures on the London ICE Futures exchange was $71.49 per barrel, which is $0.11 (0.15%) lower than at the close of previous trading. On Thursday, these contracts fell by $1.86 (2.5%), to $71.6 per barrel.
WTI oil futures for November on electronic trading of the New York Mercantile Exchange (NYMEX) decreased in price by $0.07 (0.1%), to $67.6 per barrel. According to the results of the previous session, the value of these contracts fell by $2.02 (2.9%) to $67.67 per barrel.
This week, Brent has already lost 4.2%, WTI – 4.9%.
The decrease in oil prices is facilitated by the information published the day before by the Financial Times newspaper that Saudi Arabia is preparing to increase production. According to the FT, citing informed sources, Riyadh is ready to abandon its unofficial oil price guidance of $100 per barrel in preparation for increasing production. The country’s authorities intend to stick to a plan in which OPEC+ will begin to gradually lift production restrictions from December 1, even if it leads to a prolonged period of low oil prices, the sources said.
Meanwhile, the authorities in the western and eastern parts of Libya have agreed to appoint a new head of the Central Bank, which is expected to help overcome the crisis that has caused a sharp reduction in oil supplies from the country. The authorities of the eastern part of Libya promised to quickly resume the stopped production.
“The new agreement between the two administrations of Libya may lead to the return to the market of supplies of more than 500,000 barrels of oil per day (b/d) in the short term,” said Han Zhong Liang, an analyst at Standard Chartered in Singapore. “This factor affects the mood of the participants.” market”.
Traders are monitoring the situation with Hurricane Helen, which has already shut down about a quarter of oil production capacity in the Gulf of Mexico. However, the hurricane is likely to pass the main oil and gas production area, Market Watch notes.