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Oil ended slightly firmer after volatile trading on Friday. supported by expectations that the Organization of the Petroleum Exporting Countries (OPEC) would agree to cut output next month. though prices fell for the sixth straight week amid global oversupply concerns.
OPEC kingpin Saudi Arabia is keen for the major producers to cut output by about 1.4 million barrels per day (bpd). around 1.5 percent of the global supply. to support the market. sources told Reuters this week. But other producers. including Russia. have been reluctant to agree to a cut.
Brent settled up 14 cents. or 0.2 percent. at $66.76 a barrel. The global benchmark fell 4.6 percent in the week. the sixth consecutive decline.
US crude settled unchanged at $56.46 a barrel after trading between $55.89 and $57.96. The contract. which had its steepest one-day loss in more than three years on Tuesday. fell 5.6 percent in the week. also its sixth straight weekly decline.
After Tuesday`s sharp fall. the market was due for a slight correction. and was now stabilizing. said Tariq Zahir. managing member at Tyche Capital Advisors in New York.
`A relief rally was in the cards.` said Bob Yawger. director of energy futures at Mizuho in New York. OPEC is likely to be spurred to action as US production continues to climb. he said.
Still. the day`s gains were likely to be limited as traders were cautious going into the weekend. he said.
`It would take a brave soul to go home really long this weekend considering the slaughter we`ve had in the past eight weeks.`
OPEC ministers meet on December 6 in Vienna to decide on production policy for the next six months amid a growing surplus in world markets.
US crude production reached another record last week. at 11.7 million barrels per day. government data showed. The record output contributed to the biggest weekly build in US crude stockpiles in nearly two years.
US drillers added two oil rigs this week. bringing the total count to the highest level since March 2015.
The rig count is seen as an indicator of future production growth.
The US imposed sanctions on Iranian oil exports this month and Iranian crude exports have fallen sharply in recent months. although Washington cushioned the blow by granting some temporary exemptions.
