Oil prices fell on Friday morning ahead of expected production increases from OPEC and its allies.
At the time of writing, Brent crude oil (BZ=F) futures were down 0.2% at $63.75 a barrel, while West Texas Intermediate crude oil (CL=F) was also down, at $60.47 a barrel.
OPEC+ is scheduled to meet on Sunday, and reports suggest the group will announce a slight increase in December production by 137,000 barrels per day, having previously decided to increase November production by the same amount.
“Uncertainty surrounding Russian sanctions also supported the growth,” said Warren Patterson, head of commodities strategy at ING, and Ewa Manthey, commodities strategist.
“However, this move will only reinforce the market’s pessimistic outlook, adding to the large surpluses expected through 2026. Obviously, this assumes no supply shock in Russia.”
Read more: Stocks fall as traders weigh a crucial week for big tech companies after earnings from Apple and Amazon
The United States last week announced sanctions on Russia’s two largest oil companies, accusing Moscow of lacking commitment to a peace process to end the war in Ukraine.
The U.S. Treasury Department announced sanctions against Rosneft and Lukoil, saying they were aimed at increasing pressure on Russia’s energy sector and hampering its ability to raise revenue to fund the war and support the economy.
Oil prices surged after the news was announced on expectations it could disrupt and tighten market supply. However, prices fell slightly due to concerns about falling demand and oversupply.
Gold prices rose on Friday morning as investors digested the outcome of Thursday’s meeting between U.S. President Donald Trump and Chinese President Xi Jinping in South Korea.
Gold futures (GC=F) edged up 0.2% to $4,022.10 an ounce at the time of writing, while spot gold was up 0.4% at $4,011.91 an ounce.
The two leaders agreed to a one-year trade truce until November 2026, with the United States lowering fentanyl-related tariffs and China pledging to delay restrictions on rare earth exports.
in stock: Create your watchlist and portfolio
Jim Reid, head of macro and thematic research at Deutsche Bank (DBK.DE), said: “Despite this stabilization, structural differences remain and the lack of concrete commitments makes it easy to cast some doubts about the scope of the deal.”
“The U.S. Trade Representative has added to the sense that we are seeing more of an extension of the truce than a de-escalation. [Jamieson] Greer confirmed last night that the United States would continue to investigate China’s compliance with the limited trade agreement reached during Trump’s first term. “
