22 Nov 2019 12:51

VIEWPOINT: Oil could consolidate at $63-64 on Friday - Promsvyazbank

MOSCOW. Nov 22 (Interfax) - Oil prices could consolidate at $63-64 per barrel on Friday, and next week the key factors will be news about the U.S.-China trade talks and positive rhetoric among OPEC+ members ahead of their summit, which could prevent prices from falling, according to Promsvyazbank analyst Yekaterina Krylova.

Oil continued to rise on Thursday, reaching its highest point since September, on speculation ahead of the OPEC+ summit. For instance, there were media reports that the agreement could be prolonged by three months, until mid-2020. It is also possible that the decision will be delayed until the beginning of next year, but the cartel clearly intends to give the market a positive signal at the end of this one. Additionally, Saudi Aramco's IPO will be taking in place in December, so it will be important for oil prices to be stable.

"On Friday we're expecting consolidation at $63-64 per barrel. Next week, news on the U.S.-China trade talks will again determine market trends, but positive rhetoric from OPEC+ members ahead of the summit could keep oil from falling," Krylova wrote.

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