Crude oil rose in the early hours
After gaining some stability at the beginning of the week on November 14, crude oil prices moved higher in the early hours on November 15. At 5:45 AM EST on November 15, the West Texas Intermediate crude oil futures contract for December delivery was trading at $44.49 per barrel—a gain of ~2.7%. The Brent crude futures contract for January 2017 delivery rose ~2.3% to $45.47 per barrel.
Renewed hopes for a supply cut by OPEC
Renewed hopes for the successful execution of OPEC’s supply cuts, announced in its Algeria meeting, supported crude oil prices since the beginning of the trading week. On November 13, Saudi Arabia’s energy minister commented that OPEC would reach an agreement to cut the production. Producers’ next meeting is scheduled for November 30 in Vienna. The individual supply quotas will be announced.
Doubts about the successful execution of the output cut deal strengthened after Nigeria, Iraq, Iran, and Libya sent signals that they might not participate in the deal. However, optimism grew due to the deal’s success this week and the comments from Saudi Arabia’s energy minister. The market is looking forward to the weekly crude oil inventory reports by the American Petroleum Institute and the U.S. Energy Information Administration. The reports will be released at 4:30 PM EST today and on November 16, respectively.
On November 14, major crude oil producers Carrizo Oil & Gas (CRZO) and Canadian Natural Resources (CNQ) rose 0.33% and 1%, while Total SA (TOT) and British Petroleum (BP) fell 1.2% and 0.6%, respectively. The SPDR S&P Oil & Gas Exploration and Production ETF (XOP) and the PowerShares DB Oil ETF (DBO) rose 1.3% and 0.62%.
In the next part, we’ll discuss how metals performed on November 15.