Oil down 2%, posts weekly loss as investors see limited effect of OPEC+ supply cuts; Brent at $78/bbl
₹6,231 per bbl, having swung between ₹6,210 and ₹6,409 per bbl during the session, against a previous close of ₹6,281 per barrel. Also Read: Stock Picks: ONGC, Oil India among top picks for Motilal Oswal in upstream sector, Indian Oil among OMCs -OPEC+ producers agreed on Thursday to remove around 2.2 million barrels per day (bpd) of oil from the global market in the first quarter of next year, with the total including a rollover of Saudi Arabia and Russia's 1.3 million bpd of current voluntary cuts.
Traders viewed the announcement with some skepticism, say analysts. -OPEC+, which pumps more than 40 per cent of the world's oil, is reducing output after prices fell from about $98 a barrel in late September on concerns about the impact of sluggish economic growth on fuel demand.
-The cuts agreed by OPEC+ on Thursday are voluntary, so there was no collective revision of OPEC+ production targets. The voluntary nature of the cuts led to some skepticism about whether or not producers would fully implement them, and also from what basis the cuts would be measured.
-In the US, Federal Reserve Chair Jerome Powell said that the central bank would move "carefully" on interest rates as risks of “under- and over-tightening are becoming balanced." US manufacturing remained subdued and factory employment fell in November, according to a survey. -Investors are keeping a watchful eye on global manufacturing activity, which remained weak during the month on poor demand, according to surveys.
On the supply side, the US on Friday imposed additional sanctions related to the price cap on Russian oil, targeting three entities and three oil tankers. -On Friday, talks to extend a week-long truce between Israel and Palestinian militant group
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