Crude Rallies At Week End, But Down On The Week
Oil prices almost unwound Thursday’s sell off rising strongly on Friday. Supply developments drove the rally with the EU/US committed to stricter enforcement of sanctions on Russia and growing expectations that OPEC may cut output further at its next meeting. A weaker greenback would also have been supportive with the USD index down 0.5%.
- WTI rose 4% to $75.84/bbl, still below Thursday’s high of $76.63. After being steady during Asian trading it trended higher through the European/US sessions. It broke through resistance at $74.92 to open up $79.65. But it was still down 1.7% on the week as demand concerns drove markets to be 6.4% lower this month.
- Brent moved above $80 again to be up 4.1% to $80.62/bbl. Key short-term resistance is $83.97, November 14 high. It was down 1% on the week to be around 5% lower in November.
- Goldman Sachs has written that it expects OPEC to act to keep Brent between $80 and $100 next year. US supplies have increased and Russian shipments have not been consistent with its commitment to cut output. Bloomberg is reporting that supplies from the North Sea and Guyana are expected to be higher in December.