Oil prices fluctuate on strengthening of dollar
By Sara Israfilbayova
Oil prices are weakly fluctuating on Friday under the pressure of dollar strengthening and in anticipation of statistics on the dynamics of the number of drilling rigs in the U.S. for the week.
U.S. West Texas Intermediate (WTI) crude futures were at $56.58 a barrel down 0.2 percent from their last settlement, while Brent crude futures, the international benchmark for oil prices, were down 0.1 percent, at $62.12 a barrel, according to Reuters.
The dollar strengthens in anticipation of data on unemployment in the U.S., restraining the growth of oil prices. Analysts believe that unemployment in the country in November remained at the October level of 4.1 percent, and the number of jobs in non-agricultural sectors of the economy increased by 200,000.
Strengthening of the dollar adversely affects the cost of commodities, in particular oil, making it more expensive for holders of other currencies.
The market also expects statistics of the American oil and gas service company Baker Hughes, a GE Company (BHGE) on the number of drilling rigs in the U.S.
The number increased by 6 units, or by 0.7 percent, to 929 units. In annual terms, the number of drilling rigs increased by 332 units, or 1.5 times, according to the company.
Oil prices finish the recovery for the second year in a row against the backdrop of a reduction in production by OPEC + countries. Nevertheless, there remain fears that an increase in the cost of oil will lead to the activation of shale oil producers in the U.S.
Eugen Weinberg, head of commodity research at Commerzbank AG, said he expects prices to continue to fall in coming months on rising U.S. oil output.
"The most important factor is not OPEC, it's shale production from the U.S.," he said.
OPEC oil production in November fell to a minimum level in six months, according to S&P Global Platts.
A poll conducted by S&P Global Platts showed that OPEC reduced oil production last month by 220,000 barrels per day, as compared to October, to 32.35 million barrels per day. The drop in production is due to a steady decline in oil production in Angola, Saudi Arabia, Iraq, Venezuela, Libya and the UAE.
Saudi Arabia, according to their estimates, reduced production in November by 50,000 barrels per day, to the lowest in four months, 9.97 million b / s.
OPEC and other major oil producers such as Russia, Azerbaijan,
Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico,
Oman, Sudan, and South Sudan reached an agreement in December 2016
to remove 1.8 million barrels a day from the market.
OPEC and its partners decided to extend its production cuts till
the end of 2018 in Vienna on November 30.
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