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Oil Prices Pause after Surge from Russian Support for Supply Cuts, Focus on G20

Published 30/11/2018, 09:32
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Investing.com - Oil prices traded slightly lower on Friday, taking a pause after news that Russia would back an agreement with OPEC to reduce output sent prices more than 2% higher in the prior session, while investors turned their attention to the G20 summit in Argentina.

New York-traded West Texas Intermediate crude futures fell 28 cents, or 0.54%, at $51.17 a barrel by 4:26 AM ET (9:26 GMT).

Meanwhile, Brent crude futures, the benchmark for oil prices outside the U.S., traded down 7 cents, or 0.12%, to $59.84.

While most investors will be focused on the meeting of U.S. President Donald Trump and his Chinese counterpart Xi Jinping on the sidelines of the G20 summit for any trade developments between the world’s two largest economies, oil traders will set their sights on another meeting planned between Russian President Vladimir Putin and Saudi Prince Mohammed bin Salman.

Prices rallied on Thursday after a report that Russia was now leaning towards a production cut and traders will watch for any news of an agreement between the two oil-producing giants.

OPEC and non-OPEC allies led by Russia will gather on Dec. 6 and 7 in Vienna to discuss output policy and consensus is looking for a production cut of 1.1 million barrels per day in an attempt to put a floor under the recent sharp drop in oil prices.

U.S. crude was on track for a monthly decline of more than 20% in November and has lost 33% since last October as concerns over the emerging oil glut following production increases by the U.S., Saudi Arabia and Russia pummeled prices.

In other energy trading, gasoline futures lost 0.33% to $1.4203 a gallon by 4:30 AM ET (9:30 GMT), while heating oil inched up 0.03% to $1.8400 a gallon.

Lastly, natural gas futures traded down 0.71% to $4.613 per million British thermal units.

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