A day after losing ground following U.S. President Donald Trump’s call to OPEC to lower crude prices, oil futures moved higher on Friday, with traders expecting the OPEC conference at Algeria this weekend.
Current information showing a significant drop in U.S. crude stocks and possible supply scarcity post application of U.S. sanctions on Iranian oil from early November supported oil’s uptick.
Petroleum futures for November shipment wound up $0.46, or 0.70%, at $70.78 a barrel, the greatest settlement price in 2 weeks, for the most active contract. For the week, petroleum futures got about 2.6%, taping 2nd successive weekly gain.
On Thursday, crude oil futures for November ended lower by $0.45, or 0.6%, at $70.32 a barrel.
On Thursday, Trump contacted the Organization of the Petroleum Exporting Countries to lower oil prices. He tweeted: “The United States safeguards the countries of the Middle East, and it was unreasonable that they continue to promote higher and greater oil rates.”
OPEC and its allies are set up to meet on Sunday to talk about ways to go over production increases as U.S. sanctions restrict Iranian exports.
Earlier in the week, data launched by the U.S. Energy Information Administration on Wednesday revealed U.S. petroleum stockpiles to have actually declined by 2.1 million barrels in the week to September 14 to 394.1 million barrels, the most affordable level since February 2015.
Products at Cushing, Oklahoma, reduced by 1.250 million barrels last week, the EIA report said.
The EIA report even more revealed that gasoline stockpiles were down by 1.7 million barrels for the week, while distillate stockpiles climbed by 800,000 barrels.
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