Oil edged higher on Oct. 21 as Russia reiterated its commitment to joining a producers’ output freeze to stem a two-year slide in prices, but a strong dollar capped the gains.
Global benchmark Brent crude futures were 44 cents higher at $51.82 a barrel at 1132 GMT.
U.S. West Texas Intermediate (WTI) crude was trading at $50.95 a barrel, up 32 cents from its last settlement.
Russian Energy Minister Alexander Novak said on Oct. 21 an oil production freeze agreement was necessary to prop up prices and that he would make proposals to his Saudi Arabian counterpart this weekend.
The Organization of the Petroleum Exporting Countries will hold a meeting on Nov. 30 to find common ground on capping output. This is expected to work out how each member country will contribute to a freeze.
“The near-term fundamentals in the oil market have turned positive. Demand is stabilizing, OPEC production has peaked (and will fall if cuts are implemented), and global inventory declines imply that the market is more balanced than many believe,” Neil Beveridge of Bernstein Energy said in a note to clients.
Oil-producing countries are hoping for higher crude prices to boost their economies. Nigeria's finance minister said on Friday he hoped oil prices would stabilize in a range of $42-50 a barrel.
A rise in the dollar on Oct. 21 to touch a seven-month high against a basket of currencies, in its third straight week of gains, prevented oil prices from pushing higher.
A stronger dollar means dollar-denominated commodities become more expensive to hold, making it less attractive for investors to buy them.
Recommended Reading
Baker Hughes Awarded Saudi Pipeline Technology Contract
2024-04-23 - Baker Hughes will supply centrifugal compressors for Saudi Arabia’s new pipeline system, which aims to increase gas distribution across the kingdom and reduce carbon emissions
PrairieSky Adds $6.4MM in Mannville Royalty Interests, Reduces Debt
2024-04-23 - PrairieSky Royalty said the acquisition was funded with excess earnings from the CA$83 million (US$60.75 million) generated from operations.
Equitrans Midstream Announces Quarterly Dividends
2024-04-23 - Equitrans' dividends will be paid on May 15 to all applicable ETRN shareholders of record at the close of business on May 7.
SLB’s ChampionX Acquisition Key to Production Recovery Market
2024-04-21 - During a quarterly earnings call, SLB CEO Olivier Le Peuch highlighted the production recovery market as a key part of the company’s growth strategy.
PHX Minerals’ Borrowing Base Reaffirmed
2024-04-19 - PHX Minerals said the company’s credit facility was extended through Sept. 1, 2028.