Oil Has Best Week Since June After Saudis Defend Market Recovery - Bloomberg

Oil Prices for Sep. 18, 2020: Brent Crude, WTI - Bloomberg:

Saudi Arabia’s warning to OPEC+ cheaters and short-sellers alike helped oil prices stage their biggest weekly rally since June, despite a grim start to the week as industry heavyweights painted a troubling demand picture for the petroleum complex.

Futures in New York rose 10% this week following a show of determination by Saudi Arabia, the most influential nation in the Organization of Petroleum Exporting Countries, to defend the market on Thursday. The Saudis hinted they’re prepared for new production cuts, and lambasted OPEC+ members that have cheated on production quotas.

Prices briefly fell as much as 1.6% on Friday following an announcement from Libyan military commander Khalifa Haftar that he will allow crude production and exports to resume. But while Haftar reached the agreement with the country’s deputy premier, it was unclear whether the deal that excluded the National Oil Co. would actually restart exports.

“Depending on Libyan oil supply coming online seems like it’s a pretty risky bet,” said Michael Lynch, president of Strategic Energy & Economic Research, so traders likely aren’t willing to make sizable wagers on it heading into the weekend. Saudi Arabia’s unambiguous comments on Thursday, though, give market participants the confidence they can “rely on OPEC to keep the taps turned off for a bit longer,” said Lynch.

Oil falls as Libya plans to resume exports; still set for weekly rise | Reuters

Oil falls as Libya plans to resume exports; still set for weekly rise | Reuters:

Oil prices fell on Friday after a Libyan commander said a blockade on the country’s oil exports would be lifted for a month, while a declining U.S. equities market also weighed on futures.

till, both the U.S. and Brent crude benchmarks were set for weekly gains after Saudi Arabia pressed allies to stick to production quotas, Hurricane Sally cut U.S. production, and banks including Goldman Sachs predicted a supply deficit.

Brent LCOc1 fell 55 cents to $42.75 a barrel by 1:48 p.m. EDT (1748 GMT), but was set to rise 7.4% for the week, while U.S. oil futures CLc1 fell 29 cents to $40.68, on track for a 9% weekly gain.

Prices fell on Friday after eastern Libyan commander Khalifa Haftar announced he would lift his blockade of oil output for one month. The blockade slashed Libyan production to just over 100,000 barrels per day now from around 1.2 million bpd previously.

Oil rises after OPEC warns members to stick to quotas | Reuters

Oil rises after OPEC warns members to stick to quotas | Reuters:

Oil prices rose for a fourth day in a row on Friday, putting crude on track for a weekly gain of about 10%, after Saudi Arabia pressed allies to stick to production quotas and banks including Goldman Sachs predicted a supply deficit.

Brent crude LCOc1 was up 18 cents at $43.48 a barrel by 0756 GMT while U.S. oil futures CLc1 rose 17 cents to $41.14.

Both contracts are set for their strongest weekly gains since early June after Hurricane Sally cut U.S. production and OPEC and its allies laid out steps to address market weakness.

Goldman Sachs predicted the market would be in a deficit of 3 million barrels per day (bpd) by the fourth quarter and reiterated its target for Brent to reach $49 by the end of the year and $65 by the third quarter of 2021.