Oil Set for Weekly Drop as IEA Warns OPEC Faces Looming Surplus - Bloomberg

Oil Set for Weekly Drop as IEA Warns OPEC Faces Looming Surplus - Bloomberg:

Oil was set for a weekly decline as the International Energy Agency warned of a looming supply glut.

Futures erased earlier losses in New York on Friday, but were still down 1.9% for the week. Sentiment has been dominated by the challenge facing the Organization of Petroleum Exporting Countries and its allies in managing the market in 2020 as production surges from their competitors. While OPEC+ didn’t discuss deepening its output curbs in Abu Dhabi on Thursday, it put pressure on members to implement their promised cuts in an effort to avoid a surplus.

Glut concerns were also fueled this week by speculation that Donald Trump had discussed moderating sanctions on Iran, with RBC Capital Markets estimating such a move could bring back around 700,000 barrels a day. Meanwhile, the U.S. and China showed signs of rapprochement in their trade war and Saudi Arabia’s new energy minister downplayed oil-demand concerns, leaving any talk of deeper output cuts to OPEC’s next ministerial meeting in December.