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Crude Oil Prices - Weekly Outlook: November 19 - 23

Published 18/11/2018, 12:01
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Investing.com - In the week ahead, oil traders will pay close attention to comments from global crude producers to gauge their readiness on cutting output, after prices suffered their sixth weekly loss in a row.

Global oil prices have lost roughly a quarter of their value since early October in what has become one of the biggest declines since a price collapse in 2014, with surging supply and the specter of faltering demand scaring off investors.

Ministers from the Organization of the Petroleum Exporting Countries (OPEC) meet on Dec. 6 in Vienna to decide on production policy for the next six months.

OPEC officials have been making increasingly frequent public statements that the cartel and its partners would start withholding crude in 2019 to tighten supply and prop up prices.

Saudi Arabia, OPEC's de facto leader, wants the cartel to slash production by about 1.4 million barrels per day (bpd), according to recent reports.

On Friday, futures pulled back to finish flat after data showed that U.S. energy firms added oil rigs for a fifth time in six weeks, keeping the rig count at its highest in over three years.

Drillers added two oil rigs in the week to Nov. 16, bringing the total count to 888, the highest level since March 2015, oilfield services firm Baker Hughes said in its closely followed report on Friday.

West Texas Intermediate crude, the U.S. benchmark, ended Friday's session flat at $56.68 a barrel by close of trade on the New York Mercantile Exchange, down from an earlier high above $58.

For the week, WTI lost 6.2%, tallying their sixth straight weekly drop.

Meanwhile, the global benchmark, Brent crude for January delivery on the ICE (NYSE:ICE) Futures Europe exchange, tacked on 14 cents to end at $66.76 a barrel.

It lost about 4.8% for the week.

Looking ahead, fresh weekly data on U.S. commercial crude inventories to gauge the strength of demand in the world’s largest oil consumer and how fast output levels will continue to rise will capture the market's attention.

The Energy Information Administration reported last week that domestic crude supplies rose by 10.3 million barrels, up for an eighth straight week, while U.S. production rose to another record.

Ahead of the coming week, Investing.com has compiled a list of the main events likely to affect the oil market.

Tuesday, November 20

The American Petroleum Institute is to publish its weekly update on U.S. oil supplies.

Wednesday, November 21

The U.S. Energy Information Administration will release its weekly report on oil stockpiles.

Thursday, November 22

Financial markets in the U.S. will be closed for the Thanksgiving holiday.

Friday, November 23

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

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