2023-06-08 13:21:26
The two benchmarks rose regarding 1% when settling on Wednesday
Oil prices rose today, Thursday, with the support of Saudi Arabia’s pledge to reduce production and a possible halt to raising interest rates at the US Central Bank, which outweighed concerns regarding weak demand and a slowing global economy.
At a meeting of the OPEC + group on Sunday, Saudi Arabia said it would cut crude production by 1 million barrels per day in July, in addition to a broader agreement to reduce supplies until 2024, as the group seeks to support lower prices.
By 12:48 GMT, Brent crude prices rose 38 cents, or 0.49%, to $77.33 a barrel, and US West Texas Intermediate crude rose 41 cents, or 0.57%, to $72.94 a barrel.
“With the OPEC+ meeting over, focus now turns to the next step the Federal Reserve will take when it meets next week,” said Tamas Varga of oil brokerage PVM.
Varga added that there is a growing consensus that the US central bank will not raise interest rates, which might lead to higher oil prices even before falling supplies begin to deplete global oil stocks.
Economists polled by Archyde.com expect the Federal Reserve to refrain from raising interest rates at its June 13-14 meeting. But few expect at least another increase this year.
However, the sudden increase in interest rates announced by Canada reminded investors for the second time this week that raising interest rates globally is far from over.
The two benchmarks recorded an increase of regarding 1%, when settling on Wednesday, supported by Saudi Arabia’s plans to make large production cuts, but price gains remained limited due to high US fuel inventories and weak Chinese export data.
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