FX.co ★ Oil Rises Over 2%

WTI crude futures surged over 2%, reaching approximately $60 per barrel on Friday, poised to break a two-week losing streak. This increase is largely attributed to potential supply risks stemming from forthcoming US sanctions. Lukoil PJSC has already initiated staff reductions across its global oil trading divisions, in anticipation of the sanctions set to be enforced on November 21. Analysts have highlighted that nearly one-third of Russia's maritime oil exports could face delays due to rerouting and sluggish unloading processes, exacerbated by India and China's decision to halt purchases of Russian crude oil. Despite these developments, the market faced downward pressures as the International Energy Agency (IEA) cautioned about an impending oil surplus. The agency projects a supply surplus over demand by 2.4 million barrels per day in the current year and 4 million in the next, albeit alongside anticipated consumption growth through 2050. Meanwhile, OPEC's reports indicate a surplus in the third quarter, coupled with increased US production and another inventory accumulation, which compounds concerns about the existing oversupply issues.