​Oil set for fourth weekly gain as Thanksgiving mutes trade

Image: Joey Podlubny/JWN

Oil headed for its fourth weekly gain amid limited reaction to signals that OPEC and its allies won’t deepen output cuts and to fresh tension between the U.S. and China.

Futures in New York were little changed, and traded between $57 and $59 a barrel all week for a gain of 0.5%. The U.S. Thanksgiving Holiday reduced trading volumes this week, with the total across all contracts less than half the prior period’s early in Friday’s session.

Data presented to an OPEC committee in Vienna showed that the market will be balanced in 2020 if the group maintains current output levels. Meanwhile, China said that U.S. legislation backing Hong Kong’s autonomy would strain ties just as the two countries work on a trade deal. The developments came on top of a report Wednesday showing a surprise increase in U.S. crude stockpiles and record production.

Drivers

Libya restarted production at a key oil field after clashes between rival fighters forced a temporary halt that threatened to jeopardize the reliable flow of crude from the OPEC country.

The retail tranche of Saudi Aramco’s initial public offering is more than fully covered with one day to go after 4.2 million investors applied to buy shares in the world’s biggest oil producer.

Russia plans to recalculate its gas condensate output before deciding whether to propose for it to be excluded from its OPEC+ production target.

Prices

West Texas Intermediate for January delivery was down 4 cents at $58.07 a barrel at 10:34 a.m. Sydney time.

The New York Mercantile Exchange was closed Thursday for a holiday, with settlement of Thursday’s electronic trading slated for Friday.

Brent for January ended Thursday down 0.3% at $63.87 on the ICE Futures Europe Exchange.

© 2019 Bloomberg L.P.

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