Oil prices in motion a third weekly decline after the market signifies new supply is going to hit the market as the demand outlook worsen, but currently still managing to hold above the $40/barrel. New York futures were unwavering in early Asian trading after gain 1% on Thursday closing. Crude oil prices had higher tracking on Wall Street after the news that Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi were about to commence in resuming stimulus talks, even though later the stocks slashed their gains as investors restraint the optimism of the compromise prospects.
November futures are down almost 3% inis week as the lockdown measures re-imposing in countries including UK and France gives doubt on the energy demand recovery. Sharp increase in next month Iraqi export cargoes observed by oil traders, said that this could indicate higher overall output from the second-biggest OPEC producer after Saudi Arabia. The more possibilities of Iraqi barrels is concurring with the reopening exports from Libya as the civil war subsides. Standard Chartered Plc analyst Emily Ashford said that the OPEC+ restriction production agreement breakdown is the biggest downside risk affecting prices, while the International Energy Agency argued that it was more likely undervaluing its oil demand forecast than elevating it in the next report.
WTI for November delivery declined to $40.24/ barrel or by 0.2% on the New York Mercantile Exchange at 8:24 a.m Singapore. The November WTI has fallen 2.6% throughout the week.
Brent for November slumped to $41.85/barrel or by 0.2% on the ICE Futures Exchange after Thursday 0.4% rises. The November Brent dropped 3% throughout the week.
OPEC+ has authorized Iraq to increase crude production next month by giving more time to make up the earlier noncompliance in the quota. But market wonder if the increase in Iraqi cargoes could exceed the new 3.6 million barrel/day limit, as the country had been sent mixed messages of the OPEC+ agreement compliance as higher exports allowed, oil-market researcher General Index Ltd explained.
