Summary:
Oil prices remain steady but are set for a weekly gain amid concerns of oversupply, economic recovery hopes in China, and rising production.
Oil prices were little changed on Friday but were set for a weekly gain amid optimism economic stimulus efforts will prompt a recovery in China, the world's biggest oil importer.
The World Bank on Thursday raised its forecast for the country's economic growth in 2024 and next year, but warned that subdued household and business confidence, along with the moribund property sector, could be lingering.
In the Middle East, Israel struck targets in Yemen that it said were controlled by Houthis, the last of the Iran-backed groups still fully engaged in the regional war that began 14 months ago.
Crude is on track for a second straight annual loss, although trading has been confined in a narrow band since mid-October. Concerns the market may be oversupplied in 2025 has grown.
The EIA said that crude oil and natural gas production in Argentina are both nearing record highs. Venezuela oil exports rose to a four-year high in October with booming sales to the US and India.
That partly reflected increases in non-OPEC+ supply, while Trump's pro-fossil fuel stance is expected to facilitate drilling activity North America.
WTI crude was fluctuating around 50 SMA, and it is unlikely to break out of the tight range before next year. The sign of a rising wedge pattern suggests the risk is skewed towards the downside.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
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