HOUSTON: Oil prices dipped on Friday in choppy trading but notched their first weekly gain in five on Friday, underpinned by the possibility that OPEC+ will agree to cut crude output when it meets on Oct. 5.
Brent crude futures for November, which expire on Friday, fell 53 cents, or 0.6%, to $87.96 a barrel. The more active December contract was down $2.07 at $85.11.
US West Texas Intermediate (WTI) crude futures fell $1.74, or 2.1%, to $79.49. Both contracts rose by more than $1 earlier in the session but dropped on news that OPEC’s oil output rose in September to its highest since 2020, surpassing a pledged hike for the month, according to a Reuters survey on Friday.
The market has seen support from the prospect of the Organization of the Petroleum Exporting Countries (OPEC) and its allies considering cutting production quotas by between 500,000 and 1 million barrels per day (bpd) at their Oct. 5 meeting.
“A deteriorating crude demand outlook won’t allow oil to rally until energy traders are confident that OPEC+ will slash output,” senior OANDA analyst Edward Moya said.
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