Oil Prices Rise for Third Consecutive Session
Oil prices climbed in U.S. trading on Friday, marking the third straight session of gains as the dollar weakened and U.S. crude stocks unexpectedly declined.
Support for oil prices also stemmed from recent reports indicating that the OPEC+ alliance may postpone a planned production increase in December, aiming to stabilize and support prices.
Prices Overview
U.S. crude advanced 1.4% to reach $71.40 per barrel, after dipping to a session low of $70.35. Brent crude gained 1.2%, reaching $75.38 per barrel with a session low of $74.25.
On Thursday, U.S. crude rose by 2.1%, while Brent gained 1.9%, moving up from recent four-week lows.
The Dollar's Performance
The dollar index fell by 0.2% on Friday, marking its fifth straight loss and reaching a one-week low of 103.68 against a basket of major currencies. This decline follows weak U.S. economic data showing October job growth at its lowest in nearly four years, which reinforced expectations for the Federal Reserve to reduce interest rates by 0.25% in November and December.
A weaker dollar makes dollar-priced oil cheaper for holders of other currencies, supporting oil futures.
U.S. Crude Stocks
The Energy Information Administration reported a drop of 0.5 million barrels in U.S. crude stocks, bringing the total to 425.5 million barrels, defying expectations for a rise of 0.8 million barrels. Gasoline stocks decreased by 2.7 million barrels to 210.9 million, while distillate stocks fell by 1 million barrels to 112.9 million barrels.
U.S. Oil Production
The EIA reported that U.S. crude output remained steady at a record 13.5 million barrels per day last week.
OPEC+ Outlook
As reported by Reuters, OPEC+ is expected to delay a planned output increase in December by 180,000 barrels per day to help stabilize the market. An official announcement on this delay is anticipated next week.