Oil futures reversed earlier loses on Friday after OPEC sources said the producer group expected limited U.S. oil output growth this year despite rising prices.
Officials at the Organization of the Petroleum Exporting Countries got the U.S. production outlook from industry experts, OPEC sources said. This would give the producer group more power to manage the market in the short term before a potential surge in shale output in 2022.
Brent crude futures rose 39 cents, or 0.53% to $73.47 a barrel by 2:53 p.m. ET.
U.S. West Texas Intermediate (WTI) crude futures settled at $71.64 per barrel, up 0.8%.
On Wednesday, Brent settled at its highest price since April 2019 and WTI closed at its highest since October 2018. But gains were capped by lingering concerns about the COVID-19 virus and a stronger U.S. dollar, which makes oil more expensive in other currencies.
Both benchmarks were on track for a weekly gain of about 1%.
Sources told Reuters that on Tuesday, officials from OPEC’s Economic Commission Board (ECB) and external presenters attended a meeting focused on U.S. output. OPEC heard from more forecasters on the outlook for 2021 and 2022 at a separate meeting on Thursday.
While there was general agreement on limited U.S. supply growth this year, an industry source said for 2022 forecasts ranged from growth of between 500,000 and 1.3 million barrels per day.
Reference: CNBC
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