Oil Prices Steady, on Track for Large Weekly Gain

Oil prices steadied Friday and were on track for strong weekly gains as support from a surprise draw in US inventories and possible action from OPEC and its allies to extend output cuts outweighed broader economic concerns.
Brent crude was down a marginal 2 cents at $61.65 but the benchmark was set for a weekly gain of nearly 4%. West Texas Intermediate crude was down 9 cents at $56.14 and on track for a gain of more than 4% over the week, Reuters reported.
The strong weekly performance was underpinned by the surprise decline in US inventories, with total US crude and oil product inventories dropping by about 10 million barrels last week.
Adding further support to prices, officials at the Organization of the Petroleum Exporting Countries said extended supply curbs are an option to offset the weaker demand outlook in 2020.
Saudi Arabia, OPEC’s de facto leader, wants to focus first on boosting adherence to the group’s production-reduction pact with Russia and other non-members, an alliance known as OPEC+, before committing to more cuts, sources told Reuters.
The shutdown since October 16 of Britain’s 150,000 bpd Buzzard oilfield and a brief shutdown in the North Sea’s Forties Pipeline System also lent support. Sources told Reuters that Buzzard would restart over the weekend.