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Oil Prices Extend Weekly Gains as OPEC Gathers in Vienna

Published 22/06/2018, 09:45
© Reuters.  Oil trades higher ahead of OPEC meeting
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Investing.com - Oil prices climbed more than 1% on Friday, extending weekly gains, as market participants awaited the outcome of meetings between the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC producers led by Russia.

New York-traded West Texas Intermediate crude futures gained 68 cents, or about 1.0%, to $66.22 a barrel by 4:42AM ET (8:42GMT).

Meanwhile, Brent crude futures, the benchmark for oil prices outside the U.S., traded up 84 cents, or 1.2%, to $73.89.

Friday’s gains lifted the weekly rise in West Texas to slightly more than 2%, while Brent lagged with an increase of just 0.9%.

OPEC members are currently gathered in Vienna at their 174th official meeting where they are trying to come to an agreement to an increase in output, counteracting their pact to curb production by 1.8 million barrels per day.

Throughout the last week, there has been a back and forth between Saudi Arabia and Russia, who wish to increase production, and members from Iraq, Iran and Venezuela that prefer to keep the supply limits in place.

However, Iranian Oil Minister Bijan Zanganeh said this week that he was feeling “very good” about OPEC’s production levels and indicated Iran could accept a modest supply hike, suggesting that members may be coming to terms.

Saudi Arabian energy minister Khalid al-Falih said on Friday that OPEC and non-OPEC members were close to agreeing on a deal to raise oil production.

A press conference is tentatively scheduled for 7:00AM ET (11:00GMT), although a final decision may not arrive until Saturday when OPEC officials are scheduled to meet with their non-member allies.

In other energy trading, gasoline futures rose 0.5% $2.0235 a gallon by 4:43AM ET (8:43GMT), while heating oil gained 1.1% to $2.0932 a gallon.

Lastly, natural gas futures traded up 0.2% to $2.981 per million British thermal units.

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