Crude oil stable in the early hours
After having a poor start to the week by falling on October 24, crude oil prices are stable in the early hours on October 25. At 6:15 AM EST on October 25, the West Texas Intermediate crude oil futures contract for December delivery was trading at $50.83 per barrel—a gain of ~0.59%. The Brent crude futures contract for December delivery rose ~0.37% to $51.65 per barrel.
Market awaits crude oil inventory data
The market is looking forward to weekly crude oil inventory reports from the American Petroleum Institute. The data will be released today at 4:30 PM EST. Weekly inventory data from the U.S. Energy Information Administration will be released on October 26. Crude oil started the week on a weaker note due to speculations about OPEC’s (Organization of the Petroleum Exporting Countries) deal. Iraq’s oil minister, Jabar Ali al-Luaibi, commented that Iraq wants to be exempt from the production cuts announced by OPEC’s members in the last meeting. These comments dented the sentiment in the crude oil market.
Iraq is the second-largest oil producer in OPEC. According to the latest reports, Iraq produced 4.78 million barrels of crude oil last month. In producers’ last meeting in Algeria, OPEC members announced an output cut for all of its members to 32.5 MMbpd–33 MMbpd (million barrels per day). Individual members’ output limit will be announced at OPEC’s next meeting on November 30 in Vienna.
On October 24, major crude oil producers Carrizo Oil & Gas (CRZO), Canadian Natural Resources (CNQ), and British Petroleum (BP) fell 3.1%, 0.18%, and 1.1%, respectively, while Total SA (TOT) rose 0.68%. The SPDR S&P Oil & Gas Exploration and Production ETF (XOP) and the PowerShares DB Oil ETF (DBO) fell 1.2% and 0.22%.
In the next part, we’ll discuss how metals performed early on October 25.