Crude Oil Prices Higher On China Inflation Reports, OPEC Outlook

West Texas Intermediate (WTI) crude oil futures for delivery in November were up 1.1% to $51.01 per barrel, while Brent oil futures for delivery in December were up 0.7% to $52.39 per barrel in pre-market trade on Friday.

Crude oil markets rose Friday in Asia and pre-bell after official data showing that mainland China exited producer-price deflation in September, with an index moving up 0.1% YOY. Consumer prices in China rose 1.9% YOY in same period, seen by some analysts as a harbinger of better news and economic growth.

Actors in global oil markets continue to monitor clues from the Organization of Petroleum Exporting Countries, and plans of oil-nations to implement production caps. In late September OPEC agreed to place a production cut on the table at its next meeting in Vienna, on Nov. 30.

However, OPEC Wednesday reported September production rose by 220,000 barrels to 33.39 million barrels a day, the highest level since 2008. The organization also boosted its forecast for 2017 non-OPEC supplies, a sign the cartel may be losing leverage in oil markets. U.S. shale oil producers are likely to boost production at higher prices.

The Baker Hughes weekly rig count report is slated for a 1:00 pm ET release. U.S. rig-counts have increased in each of the last seven straight weeks, and another increase could signal markets of longer oil surpluses.

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