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September 30, 2022
10:14 am
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Oil prices stabilized in early trading, Friday, but are heading to achieve their first weekly gains in five weeks, supported by the decline of the US dollar, and the possibility of the “OPEC +” group agreeing to reduce crude production, when it meets on the fifth of October.
US West Texas Intermediate crude futures for November delivery rose 6 cents to $81.29 a barrel at 00:54 GMT, following falling 92 cents in the previous session.
Brent crude futures for November also rose by two years to $88.51 a barrel, following losing 83 cents in the previous session.
Both Brent and West Texas Intermediate are heading to rise by regarding 3 percent this week, which is their first weekly rise since August, following recording their lowest levels in nine months during the past days.
Analysts said: The market appears to have found ground; The supply is set to shrink as the European Union bans Russian oil imports from December 5.
“Basically, I still think prices are likely to rise, due to tougher sanctions on Russia, lower global crude inventories and lower US Strategic Petroleum Reserve supplies,” said Baden Moore, commodities analyst at National Australia Bank.
He added, “I expect that OPEC is in a good position to manage supplies, to offset the risks related to demand.”
Three sources told Archyde.com that senior members of the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia called OPEC+ began discussing production cuts before their meeting on Wednesday.
A source said early last week that Russia may propose a cut of up to one million barrels per day.
Oil prices also rose due to the dollar’s decline from its highest level in 20 years last week. A weaker dollar makes dollar-denominated oil cheaper for buyers holding other currencies, which improves demand for the commodity.
(Archyde.com)
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