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Crude Oil Is Weaker before the Oil Rig Count Data on October 28

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Dec. 4 2020, Updated 10:53 a.m. ET

Crude oil is weaker in early hours

After rising on October 27, crude oil prices are weaker in the early hours on October 28. At 6:55 AM EST on October 28, the West Texas Intermediate crude oil futures contract for December delivery was trading at $49.47 per barrel—a fall of ~0.48%. The Brent crude futures contract for December delivery fell ~0.26% to $50.34 per barrel.

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Oil rig count and producers’ meeting

The market is looking forward to the oil rig count data by Baker Hughes. The data will be released today at 1:00 PM EST. On the other hand, producers’ meeting in Vienna is going to start today. In this meeting, the technical committee is expected to find OPEC (Organization of the Petroleum Exporting Countries) members’ individual production capacity. OPEC also invited 12 non-OPEC members who are expected to join on October 29. Out of 12 non-OPEC members, Norway declined to participate in the gathering.

The major objective of producers’ meeting would be to discuss the production cut announced for all of its members in the previous meeting in Algeria. The final individual output limit will be announced at its next meeting on November 30 in Vienna. In producer’s meeting in Algeria, OPEC members announced an output cut for all of its members to 32.5 MMbpd–33 MMbpd (million barrels per day). In September, OPEC produced 33.4 MMbpd of crude oil.

On October 27, major crude oil producers such as Carrizo Oil & Gas (CRZO), Total SA (TOT), and British Petroleum (BP) rose 1.3%, 0.9%, and 0.43%, respectively. Canadian Natural Resources (CNQ) fell 0.18%. The SPDR S&P Oil & Gas Exploration and Production ETF (XOP) and the PowerShares DB Oil ETF (DBO) rose 0.08% and 1.11%.

In the next part, we’ll discuss how metals performed early on October 28.

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