Oil Prices Drop, Set for Weekly Loss Even After OPEC+ Extends Output Cuts
Oil prices fell 1% on Friday and were headed for a weekly loss as analysts projected a supply surplus next year despite an OPEC+ decision to delay output hikes and extend deep production cuts to the end of 2026.
Brent crude futures were down 85 cents, or 1%, to $71.24 per barrel at 11:04 a.m. EST. U.S. West Texas Intermediate crude futures were down 92 cents, or 1%, to $67.38 per barrel.
For the week, Brent was on track to fall by more than 2%, while WTI was on course for a nearly 1% drop.
On Thursday, the Organization of the Petroleum Exporting Countries and allies in OPEC+ pushed back the start of oil output rises by three months until April and extended the full unwinding of cuts by a year until the end of 2026.
Weak global oil demand and the prospect of OPEC+ ramping up production as soon as prices rise have weighed on prices, said Bob Yawger, director of energy futures at Mizuho (NYSE:MFG) in New York.
"They're just waiting for better pricing and once they get that, they're going to start jumping in again," Yawger said.
OPEC+, responsible for about half of the world's oil output, was planning to start unwinding cuts from October 2024, but a slowdown in global demand - especially from top crude importer China - and rising output elsewhere have forced it to postpone the plan several times.
Source : Reuters
