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 looking ahead to the OPEC meeting at Algeria this weekend.
Recent data showing a notable drop in U.S. crude inventories and possible supply shortage post implementation of U.S. sanctions on Iranian oil from early November supported oil’s uptick.
Crude oil futures for November delivery ended up $0.46, or 0.70%, at $70.78 a barrel, the highest settlement price in two weeks, for the most active contract. For the week, crude oil futures gained about 2.6%, recording second
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 called on the Organization of the Petroleum Exporting Countries to lower oil prices. He tweeted : “The U.S. protects the countries of the Middle East, and it was unfair that they continue to push for higher
and higher oil prices.”
OPEC and its allies are scheduled to meet on Sunday to discuss how to discuss production increases as U.S. sanctions restrict Iranian exports.
Earlier in the week, data released by the U.S. Energy Information Administration on Wednesday showed U.S. crude oil stockpiles to have declined by 2.1 million barrels in the week to September 14 to 394.1 million barrels, the lowest level since February 2015.
Supplies at Cushing, Oklahoma, decreased by 1.250 million barrels last week, the EIA report said.
The EIA report further showed that gasoline stockpiles were down by 1.7 million barrels for the week, while distillate stockpiles climbed by 800,000 barrels.