RIYADH: Oil prices dipped on Friday in choppy trading but notched their first weekly gain in five on Friday, underpinned by the possibility that the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, will agree to cut crude output when it meets on Oct. 5.
Brent crude futures for November, which expire on Friday, fell 53 cents, or 0.6 percent, to $87.96 a barrel. The more active December contract was down $2.07 at $85.14.
US West Texas Intermediate crude futures fell $1.74, or 2.1 percent, to $79.49.
OPEC+ to hold Oct. 5 meeting in person in Vienna
OPEC+ will hold its meeting on Oct. 5 in person in Vienna, an OPEC source told Reuters on Saturday.
A virtual option will also be available for some delegations due to the short notice if they are unable to.
OPEC+, which combines OPEC countries with allies such as Russia, is meeting against a backdrop of falling prices from multi-year highs hit in March and severe market volatility.
Sources have told Reuters talks on an oil output cut are focussing on a potential reduction of 500,000 barrels per day to 1 million bpd to support the market.
Earlier this week, a source familiar with Russian thinking said Moscow could suggest a cut of up to 1 million bpd, while an OPEC source put the likely figure closer to 500,000 bpd. Talks are expected to continue ahead of the meeting.
Nigerian oil firm NNPC buys OVH Energy’s downstream assets
Nigeria’s state-owned oil company NNPC Ltd. has bought the marketing business of unlisted OVH Energy, giving it access to 380 fuel stations in Africa’s largest oil producer and Togo, among other assets, the two companies said on Saturday.
OVH Energy Marketing, the owner and operator of Oando branded retail service stations, said the outlets would be rebranded NNPC and full integration is expected by the end of 2023.
The deal also gives NNPC access to eight liquefied petroleum gas plants, three aviation depots and 12 warehouses.
NNPC, which became a commercial entity in July, already owns more than 500 fuel stations across Nigeria and said it would be ready for an initial public offering by mid-next year.
India cuts windfall tax on crude oil output, diesel exports
The Indian government has cut a windfall tax on domestically produced crude oil to 8,000 ($97.99) rupees per ton from 10,500 rupees per ton from Sunday, after a decline in global oil prices.
India has also scrapped an export tax on jet fuel and halved export duties on diesel to 5 rupees per liter from Sunday, a government notification said.
(With input from Reuters)