Oil rally resumes as OPEC + sees tight supply
- Algeria says OPEC + production increase should not exceed 400,000 bpd
- Brent heads for first weekly drop in nearly two months
- Rise in US stocks and resumption of Iranian talks
LONDON, Oct.29 (Reuters) – Oil hit $ 84 a barrel again on Friday, ahead of a multi-year peak this week, as OPEC and its allies’ expectations keep supply tight against the rising US stocks and the prospect of more Iranians. exports.
Algeria said Thursday that an increase in crude production by OPEC and its allies in December is not expected to exceed 400,000 barrels per day due to the risks. The alliance, which is gradually reversing last year’s record production cuts, meets on November 4.
“Supply will therefore continue to catch up with demand for the time being,” said Stephen Brennock of oil broker PVM. “In short, OPEC + intends to continue to act as a key pillar of price support.”
Brent crude rose 21 cents, or 0.3%, to $ 84.53 a barrel at 8:22 a.m. GMT, while US West Texas Intermediate crude rose 10 cents, or 0.1%, to 82.91 $. Both benchmarks hit multi-year highs on Monday.
Crude surged in 2021 as economies recover from the pandemic. Still, prices are poised to drop this week – the first weekly drop in about two months for Brent.
The heat is out of the rally amid easing concerns over soaring natural gas and coal prices that have spurred the shift from fuel to power generation, and signs of an increase in supply. in petroleum.
US inventory figures this week showed crude inventories rose 4.3 million barrels more than expected.
Iran has said talks with world powers over relaunching its 2015 nuclear deal will resume by the end of November, allowing it to take one more step towards increasing oil exports currently under sanctions. American. However, expectations of a return of Iranian supply to the market in the short term seem to have faded.
“The potential restart of nuclear talks with Iran and the potential return of Iranian crude to the markets legally seem to have run their course,” said Jeffrey Halley of brokerage firm OANDA.
Additional reporting by Roslan Khasawneh in Singapore and Sonali Paul in Melbourne; edited by Jason Neely
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