Oil prices stable on expected OPEC cuts, but surging U.S. supply drags

November 16, 2018

By Henning Gloystein

SINGAPORE (Reuters) – Oil prices were stable on Friday, supported by expected supply cuts from OPEC but held back by record U.S. production.

U.S. West Texas Intermediate (WTI) crude oil futures were at $56.5/ per barrel at 0132 GMT, up 12 cents from their last settlement.

Brent crude oil futures were up 7 cents at $66.69 a barrel.

Prices were mainly supported by expectations the Organization of the Petroleum Exporting Countries (OPEC) would start withholding supply soon, fearing a renewed rout such as in 2014 when prices crashed under the weight of oversupply.

However, Morgan Stanley (NYSE:MS) warned a cut by the Middle East dominated producer cartel may not have the desired effect.

“The main oil price benchmarks – Brent and WTI – are both light-sweet crudes and reflect this glut,” the U.S. bank said.