Oil is set for the first weekly decline since early September on rising global output as Tropical Storm Nate tracks toward the U.S. Gulf.
Futures were little changed in New York and are down 1.9 percent this week. OPEC output climbed marginally last month, while U.S. production last week extended gains to the most since July 2015. Companies from BP Plc to Chevron Corp. are shutting platforms in the Gulf of Mexico as Nate approaches. The storm is forecast to become a hurricane south of Louisiana on Saturday.
While oil rallied into a bull market last month amid stronger demand prospects, prices have struggled to hold above $52 a barrel on speculation expanding U.S. output may offset supply curbs led by the Organization of Petroleum Exporting Countries. Russia is open to extending cuts with OPEC past its expiry at the end of March, President Vladimir Putin said in Moscow this week.
“The oil price weakness is just short term,” said Barnabas Gan, an economist at Oversea-Chinese Banking Corp. in Singapore. “With the coordinated actions between OPEC and Russia to shore up prices, there is still room for another rally before the end of the year.”
West Texas Intermediate for November delivery was at $50.67 a barrel on the New York Mercantile Exchange, down 12 cents, at 7:45 a.m. in London. Total volume traded was about 68 percent below the 100-day average. Prices rose 81 cents to $50.79 on Thursday, the first gain in four sessions.
Brent for December settlement lost 8 cents to $56.92 a barrel on the London-based ICE Futures Europe exchange. Prices are down 1.1 percent for the week. The global benchmark crude traded at a premium of $5.89 to December WTI.
OPEC pumped 32.83 million barrels a day in September, up 120,000 barrels a day from August, according to figures compiled by Bloomberg. U.S. oil output rose by 14,000 barrels a day to 9.56 million a day last week, according to data from the Energy Information Administration.
- Nate was about 95 miles (153 kilometers) east-southeast of Isla Guanaja, Honduras, with top winds of 40 miles an hour, the U.S. National Hurricane Center said in an advisory at 11 p.m. New York time.
©2017 Bloomberg L.P. This article was written by Ben Sharples from Bloomberg and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to firstname.lastname@example.org.
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