In Asian trade on Friday, oil prices remained steady at three-week highs as fears about slowing economic growth were mainly outweighed by the likelihood of tighter supply due to deeper Saudi and Russian production cuts. The Organization of Petroleum Exporting Countries and Allies (OPEC+) and Moscow have achieved a fresh agreement to further reduce supplies, …
In Asian trade on Friday, oil prices remained steady at three-week highs as fears about slowing economic growth were mainly outweighed by the likelihood of tighter supply due to deeper Saudi and Russian production cuts. The Organization of Petroleum Exporting Countries and Allies (OPEC+) and Moscow have achieved a fresh agreement to further reduce supplies, according to Russian Deputy Prime Minister Alexander Novak, who also said that more production cuts will be announced next week. The cuts will probably complement Saudi Arabia’s and Russia’s existing supply cuts, resulting in a tighter supply forecast for the remainder of the year, which is anticipated to drive up prices. This idea supported oil prices this week as they overcame a run of weak economic signals from the U.S. and China.
By 20:27 ET (00:27 GMT), Brent oil futures were stable at $86.81 per barrel and West Texas Intermediate crude futures were unchanged at $83.62 per barrel. This week, both contracts saw gains ranging from 2.9% to 5%, with WTI particularly benefiting from a tighter outlook for U.S. supplies. Data released this week showed a far larger-than-anticipated draw in U.S. stockpiles before to Labor Day Weekend, which is when summer demand in the country peaks. Oil prices rose as a result of relative dollar weakness, which had earlier in the week fallen to a three-week low; however, the dollar recovered on Thursday after a stronger-than-expected inflation figure. The markets are now waiting for additional hints on the American economy and interest rates, as well as potential economic signals from China.
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