Oil settles near 3-year high ahead of OPEC + meeting
- OPEC and its allies meet on Monday
- OPEC + plans to increase supplies, sources say
- Platform count hits highest since April 2020 -Baker Hughes
Oct. 1 (Reuters) – Oil stabilized above $ 78 a barrel on Friday, just below a three-year high reached earlier this week, based on expectations that ministers of the OPEC will maintain a steady pace to increase supply.
The Organization of the Petroleum Exporting and Allied Countries, known as OPEC +, meets on Monday. The group is slowly reversing record production cuts made last year, although sources say it plans to do more to increase production. Read more
Brent crude rose 97 cents, or 1.2%, to $ 79.28 in its fourth weekly rise. US West Texas Intermediate (WTI) rose 85 cents to $ 75.88 in a sixth week of earnings.
Brent has risen over 50% this year and hit a three-year high of $ 80.75 on Tuesday.
OPEC + is facing pressure from consumers such as the United States and India to produce more in order to reduce prices, as demand has recovered faster than expected in some parts of the world.
“If OPEC + sticks to the scenario and only achieves the expected increase of 400,000 bpd in November, energy markets will soon see oil prices at $ 90,” said Edward Moya , senior market analyst at OANDA, adding that any increase below 600,000 barrels should push prices up. .
Oil is also finding support, as soaring global natural gas prices are pushing power producers to move away from gas. Generators in Pakistan, Bangladesh and the Middle East have started to switch fuels. Read more
“The most likely reason for the stability of oil prices is that investors believe the gap between supply and demand will widen as the electricity crisis worsens,” Naeem Aslam said. , analyst at Avatrade.
U.S. energy companies this week added oil and gas rigs for the fourth week in a row as more storm-hit offshore units resumed service in the Gulf of Mexico.
Platforms rose 7 to 528 in the week to Oct. 1, the highest since April 2020, energy services firm Baker Hughes Co (BKR.N) said on Friday in its closely watched report.
Reporting by Laura Sanicola in New York Additional reporting by Alex Lawler, Sonali Paul and Florence Tan Editing by Alistair Bell and Matthew Lewis
Our Standards: The Thomson Reuters Trust Principles.