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Oil futures edged lower Friday, on track for a weekly loss, as traders focus on signs of ample crude supply.
West Texas Intermediate crude for December delivery CLZ19, +0.25% on the New York Mercantile Exchange were off 10 cents or 0.2%, at $56.67 a barrel, while January Brent crude BRNF20, -0.02% declined 32 cents, to $61.96 a barrel on ICE Europe. WTI, the U.S. benchmark, was on track for a 1% weekly retreat, while Brent, the global benchmark, was headed for a 0.9% weekly fall.
Oil slipped into negative territory after the Paris-based International Energy Agency, in its monthly report, raised its forecast for oil output growth for countries outside of the Organization of the Petroleum Exporting Countries. The IEA said it expects non-OPEC supply growth to rise to 2.3 million barrels a day next year, up from its previous estimate of 2.2 million barrels a day, with the set to continue leading the way.
OPEC, in its monthly report on Thursday, lowered slightly its own non-OPEC output growth forecast.
But even that was cold comfort for oil bulls. Carsten Fritsch, commodities analyst at Commerzbank, noted that OPEC’s figures point to supply outstripping demand by 645,000 barrels a day in the first half of 2020 — underlining the need for another cut in output when OPEC and its allies meet in Vienna next month to discuss the status of their existing supply curbs.
Crude oil prices fell Thursday after the Energy Information Administration said U.S. crude supplies irose by 2.2 million barrels in the week ended Nov. 8, with domestic crude production rising by 200,000 barrels a day to a record 12.8 million barrels a day.
Traders also continue to watch U.S.-China trade talks. Renewed optimism over a potential “phase one” agreement appeared to limit downside pressure, analysts said, after White House economic adviser Larry Kudlow offered a largely upbeat assessment of talks, albeit with little detail.
Kudlow on Thursday said negotiators are getting close to an agreement, but that President Donald Trump wasn’t yet ready to sign off. Trump “likes what he sees, he’s not ready to make a commitment, he hasn’t signed off on a commitment for phase one, we heave no agreement just yet for phase one,” he said at a Council on Foreign Relations event, according to The Wall Street Journal.
December gasoline RBZ19, +0.02% was off 0.7% at $1.6044 a gallon, while December heating HOZ19, -0.06% fell 0.6% to $1.9059 a gallon. December natural gas NGZ19, +0.72% rose 0.3% to $2.654 per million British thermal units.
