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Oil futures inched a bit higher on Friday, but remained on track for a weekly loss, as traders focused on signs of ample crude supply.
Prices for the commodity had weakened around the time the Paris-based International Energy Agency, in its monthly report Friday, 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.
That news came a day after the Energy Information Administration reported a 2.2 million-barrel rise in U.S. crude supplies in the week ended Nov. 8 and a weekly increase of 200,000 barrels a day to a record 12.8 million barrels a day in domestic crude production.
U.S. benchmark West Texas Intermediate crude for December delivery CLZ19, +0.21% on the New York Mercantile Exchange were up 22 cents or 0.4%, at $56.99 a barrel on the New York Mercantile Exchange, with front-month contract prices trading around 0.7% lower for the week.
January Brent crude BRNF20, +0.24% tacked on 11 cents, or 0.2%, to $62.39 a barrel on ICE Europe. The global benchmark was headed for a 0.2% weekly fall.
The Organization of the Petroleum Exporting Countries, 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.
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, +0.34% was up 0.3% at $1.6208 a gallon, with prices looking at a loss of 0.8% for the week, while December heating oil HOZ19, +0.16% added 0.2% to $1.9218 a gallon, poised for a weekly rise of 0.2%.
December natural gas NGZ19, -0.45% fell 0.4% to $2.636 per million British thermal units, trading around 5.5% lower for the week.
