Oil Prices Edge Down As Russia Continues to Overproduce

Oil prices fell this at the end of the week, capping off what has turned out to be quite an excellent month for crude. Specifically, benchmark West Texas Intermediate futures slipped more than 4 percent, settling down at $55.17 a barrel. Sure enough, that 4.1 percent loss on the week ends three straight weeks of grains.  

But even though trading volume was lighter on Friday, crude managed to eke out a 2.3 percent gain on the month.  Still, European Brent futures slid by $1.44 to $62.43.  After all is said and done, though, the month registered up 6 percent on the year, which is the best month since April. 

Industry analysts argue that the decline may have something to do with Iraq’s prime minister announcing his resignation.  And that came after persistent weeks of—often deadly—protests; in addition to belligerent investors vying for better positioning as we approach next week’s OPEC+ meeting. 

Indeed, there have been many weeks of civil unrest in Iraq, and that has forced Prime Minister Adel Abdul-Mahdi to announce his resignation, Friday.  As a matter of fact, some traders believe this may be the beginning of the end to the country’s continual protests that will final terminate the ongoing threats of oil disruption.

And that is bearish for prices.  

On the other side of this, however, Russia’s oil output hovered at roughly 60,000 barrels per day, which is better than the country’s agreed-upon ceiling of 11.18 million barrels per day for the month of November.  Furthermore, this extends an above-ceiling production run that will certainly stir things up when OPEC meets with its allies in Vienna, next week. 

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