Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
This decline is due to several factors, primarily due to analysts’ expectations of oversupply… oil During the following year, despite the decision made by the coalition OPEC+ By delaying the production increase and extending additional voluntary adjustments of 1.65 million barrels per day, which were announced in April 2023, until the end of December 2026 instead of the end of December 2025.
When the contracts were settled on Friday, oil futures fell Brent 97 cents, or 1.4 percent, to $71.12 a barrel. U.S. West Texas Intermediate crude futures were down $1.10, or 1.6 percent, at $67.20 a barrel.
Prices also fell due to the increase in the number of platforms oil Gas is running in the United States this week for the first time in 8 weeks, pointing to higher output from the world’s largest crude producer.
Baker Hughes said in its closely watched report that the oil rig count rose by 5 this week to 482, the highest level since mid-October, while gas rigs rose by 2 rigs to 102, the highest level since early November.
Despite the increase in the number of rigs this week, she said Baker Hughes The total is still down by about 37, or 6 percent less than this time last year.
On Thursday, the OPEC+ alliance delayed the start of the increase in oil production by three months until April 2025 and extended the period until the cancellation of all cuts by a year until the end of 2026.
Weak global oil demand and the prospect of OPEC+ increasing production when prices rise weighed on trading, said Bob Jauger, director of energy futures at Mizuho in New York.
The alliance, which pumps about half of the world’s crude oil output, had planned to begin tapering production cuts from October 2024, but a slowdown in global demand, particularly in China, and rising production outside the group, among other factors, has prompted the alliance to repeatedly delay those plans.
“While OPEC+’s decision to postpone strengthens fundamentals in the near term, it can be seen as an implicit acknowledgment that demand growth is slow,” HSBC Global Research analysts told Reuters.
Bank of America expected increasing oil surpluses to push up the price Brent oil to an average of $65 per barrel in 2025, while oil demand growth will return to 1 million barrels per day next year, the bank said in a note on Friday.
While I stay Goldman SachsOn Friday, he expressed expectations for an average price of Brent oil of $76 per barrel in 2025, indicating a balanced market situation, as a drop in OPEC+ supplies offset an unexpected rise in commercial inventories in OECD countries last month.
Brent crude traded in a narrow range between $70 and $75 a barrel last month, amid assessment of weak demand indicators in China and rising geopolitical risks in the Middle East.
