Oil closes down, with dollar and OPEC+ on the radar

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Oil futures contracts closed lower this Friday (30). Investors are still looking forward to the meeting of the Organization of Petroleum Exporting Countries and allies (OPEC+), next Wednesday (5th). The main cartel members will start discussions about a possible cut in oil production, according to Reuters.

WTI crude for November closed down 2.14% ($1.74) at $79.49 a barrel on the New York Mercantile Exchange (Nymex), up 0.95% weekly. Brent for December dropped 2.34% (US$ 2.04), at US$ 85.14 a barrel, on the Intercontinental Exchange (ICE) and lost 1.17% for the week.

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Oil rose during the dawn, but then turned down, amid the appreciation of the dollar – a movement that cooled down afterwards. According to Oanda economist Edward Moya, the oil demand outlook isn’t getting any favors from economic data or corporate reports.

Furthermore, he points out that OPEC+ will have an easy job next week, “but oil prices will not rise until energy traders are confident that an aggressive reduction in production by around 1 million bpd will be delivered.” analyze.

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For Capital Economics, OPEC+ is concerned about falling prices since its last meeting and weakening demand as the global economy looks set to enter recession.

“However, many OPEC+ members are producing far less oil than their quotas. As a result, the actual impact on supply will be markedly less than the main cut of the group’s quota”, explains the consultancy.

Source: CNN Brasil

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