Oil headed for the best weekly gain since October as focus shifted to the US stimulus outlook and a storm menacing the Gulf of Mexico.
Oil steadied after a two-day advance as investors bet the global demand recovery will remain intact despite the latest wave of Covid-19 that’s led to tighter restrictions on movement in many countries.
Oil fell after OPEC+ agreed to boost production into 2022, resolving an internal dispute that had shaken the alliance.
Oil giant Royal Dutch Shell is expected to reveal that profits more than doubled last year as it benefited from the surging cost of crude.
Crude halted its biggest slide in more than a week as OPEC showed increased determination to curb production.
Crude oil prices are likely to exceed forecasts as early 2018 progresses due to increased demand and strong adherence to production cuts, say Goldman Sachs.
Crude sunk after a government report showed U.S. inventories piled up for a second week just as Russia is said to be less than convinced that OPEC should extend its output limits in a meeting at the end of this month.
Saudi Arabia sees oil price rising over the next two years
The average Brent crude oil price for 2016 is likely to be $40 per barrel and unlikely to rise above $50 ber barrel in 2017, according to the US Energy Information Administration.
Investors are losing faith in an oil-price recovery next year as Iran prepares to add more crude to a global glut.
Oil's global glut will be prolonged as US stockpiles see their longest run of gains in seven months.