Spot Cargo Markets — Brent Below $60/bbl

摘要

Global benchmark Brent failed to defend key support at $60 per barrel despite rhetoric and posturing ahead of December’s Opec summit in Vienna. Non-Opec Russia has signaled it might be willing to join producer group efforts, led by Saudi Arabia, to cut supply and bolster prices. Moscow’s earlier reluctance was seen as a major reason for recent price falls, with US sanctions waivers against Iran also playing a part. Brent bounced off a fresh 2018-month low of $57.50/bbl to close at $59.51/bbl Thursday, still down $3.02/bbl from before the US Thanksgiving holiday. US price-pin West Texas Intermediate finished the week $2/bbl lower at $51.45/bbl. Opec heavyweight Saudi Arabia has made it clear that it will not act alone: “We are going to ... do whatever is necessary, but only if we act together as a group of 25 [nations],” Saudi Energy Minister Khalid al-Falih told reporters in Abuja, Nigeria, on Wednesday. Al-Falih was in Abuja for a meeting with Nigerian Oil Minister Emmanuel Ibe Kachikwu. A strong US dollar is meanwhile raising concerns about the strength of oil demand growth in emerging economies, which is expected to account for the bulk of incremental consumption. A strong dollar makes oil less affordable.