NEW YORK: Oil prices were up slightly in heavy, seesaw trading on the last trading day of the week on Friday, giving back most earlier gains after news that major producers would consider additional supply a day after US President Donald Trump again blasted the cartel.
Investors grappled with whether the Organization of the Petroleum Exporting Countries and non-OPEC producers will offset a shortfall from Iran once US sanctions go into full force November 4. Major producers are scheduled to gather in Algeria on Sunday.
“The question is just how much oil is going to be taken off the market with US sanctions on Iran,” said Gene McGillian, director of market research at Tradition Energy in Stamford, Connecticut. Compounding declining production in Venezuela, Iran’s production cuts could lead to a much tighter supply picture, he said. “I think that the market is building up energy for another try at multiyear highs.”
Global benchmark Brent crude LCOc1 settled 10 cents higher at $78.80 a barrel. US light crude CLc1 rose 46 cents to $70.78 a barrel, more than $1 below the session high of $71.80. US crude rose 2.5 per cent in the week and Brent posted a 0.7-per cent weekly gain.
In early trade, supply worries sent Brent $1.00 higher to $80.12 per barrel. Prices retreated after a source said that OPEC and its allies were discussing the possibility of raising output by 500,000 barrels per day. — Reuters
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