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Possibility of extension of OPEC +’s cuts balances anxiety

by Bunkerist
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Demand concerns arising from rising coronavirus cases in the US and Europe seem to be compensated in anticipation of an extension of OPEC-led supply restrictions. Oil stabilized above $ 42 on Friday and is still heading for the weekly decline.

Several US states reported daily record increases in infections on Thursday. France, on the other hand, extended the curfew of about two-thirds of its population due to the second wave of the COVID-19 outbreak in Europe.

Brent crude LCOc1 rose 2 cents to $42.48 a barrel by 1335 GMT, having gained 1.7% on Thursday. WTI crude CLc1 added 8 cents, or 0.2%, to $40.72.

Both contracts are heading for a weekly loss.

Given the high number of new COVID-19 cases, there is little support on the demand side and / but pressure on prices on the supply side.

Libyan production, mostly offline since January, has reached 500,000 barrels per day (bpd) and will increase further by the end of October.

The second wave of the epidemic and the slowdown in demand recovery raised the question of whether the increase was early.

On Thursday, Russian President commented that Moscow is not opposed to extending OPEC + oil production cuts. However, for now the only voice has come from Moscow. OPEC + has not yet improve the idea that it will increase production by 2 million barrels in January 2021 as part of its plan to pump more as demand increases.

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