WTI oil prices rose in early Friday trading, regaining some ground above the $61 level, but remain on track to lose more than 6% in what could be the worst week for crude since June. The price of oil is under pressure as markets factor in a scenario of increased supply. Such concerns have intensified ahead of the OPEC+ meeting scheduled for this weekend, which is expected to result in the announcement of a production increase that, according to reports, could reach 500,000 barrels per day from November. At the same time, the growth of global economic activity is expected to slow, weighing on demand. Against this backdrop, there may be scope for the decline in oil prices to continue. However, any further falls are unlikely to be particularly steep, even if expectations of increased OPEC+ output are confirmed this weekend, as this scenario is already largely priced in.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
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