It’s a Bad Week for Oil

Oil headed for the biggest weekly loss since mid-March as a resurgence of Covid-19 and uncertainty around the prospect for an OPEC+ deal to increase supply clouded the short-term outlook. 

Oil prices fell by more than $1 a barrel on Thursday on expectations of more crude hitting the market after a compromise deal between leading OPEC producers and a surprisingly poor weekly reading on U.S. fuel demand. 

Talks among the Organization of the Petroleum Exporting Countries, Russia, and their allies, a group known as OPEC+, broke down this month after the UAE objected to extending the group’s supply pact beyond April 2022, saying the deal did not account for the UAE’s increased output capacity. 

The agreement should now pave the way for OPEC+ members to extend a deal to curb output until the end of 2022, the sources added, although the UAE energy ministry said in a statement that no deal with OPEC+ on its baseline has been reached and deliberations were continuing. 

Brent crude is down to $73.25 and Crude Oil WTI Futures down to $71.47 which could indicate an opportunity to buy at 10.30 GMT+3. 

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