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Crude Oil Prices - Weekly Outlook: November 5 - 9

Published 04/11/2018, 12:03
Updated 04/11/2018, 12:14
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Investing.com - Oil traders are likely to stay focused on global supplies in the week ahead, after prices suffered their fourth consecutive weekly loss, pressured by U.S. plans to issue waivers on Iranian crude sanctions.

The U.S. government has agreed to let eight countries, including close allies South Korea and Japan, as well as India, to keep buying Iranian oil after it reimposes sanctions on Tehran starting Monday.

The restoration of U.S. sanctions on Iran, the third-largest producer in the Organization of the Petroleum Exporting Countries (OPEC), comes after U.S. President Donald Trump pulled out of the Iran nuclear deal earlier this year.

Oil prices rallied this year to a four-year high above $85 per barrel on fears Washington was seeking to cut Iranian oil exports to zero.

But the rally petered out in recent weeks amid market fears about a slowing global economy and as expectations grew that Iran would still be allowed to export significant amounts.

Recent indications of growing global crude production have also weighed. The world's three largest producers - Russia, Saudi Arabia and the United States - are all pumping at record or near-record levels.

On Friday, oil prices finished lower, posting a fourth consecutive weekly loss.

December West Texas Intermediate crude, the U.S. benchmark, fell 55 cents, or roughly 0.8%, to settle at $63.14 a barrel by close of trade on the New York Mercantile Exchange, having earlier touched its lowest since April 9 at $62.63.

For the week, WTI lost 6.6%, their largest weekly loss since February.

Meanwhile, the global benchmark, Brent crude for January delivery on the ICE (NYSE:ICE) Futures Europe exchange, declined 6 cents to end at $72.83 a barrel, after hitting a session low of $72.17, a level last seen on August 21.

It lost about 6.2% for the week.

Both contracts are more than $10 a barrel below four-year highs reached in the first week of October.

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

Tuesday, November 6

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

Wednesday, November 7

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

Friday, November 9

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

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