Oil prices rose Friday and headed for gains for the second straight week, supported by OPEC + ‘s decision to make the largest supply cut since 2020, despite recession concerns and highs. interest rates.
The cut decided by the OPEC + cartel, which includes the Organization of Petroleum Exporting Countries (OPEC) and allies including Russia, comes before the European Union bans Russian oil and will reduce supplies in a market already plagued by scarce supplies.
Brent crude rose 1.2% to $ 95 a barrel. US West Texas Intermediate Crude Oil also rose 1.1% to $ 89.4 a barrel.
“One of the main consequences of the recent OPEC cuts will be the likely return to the oil price of $ 100 … but the gains will be limited in light of growing economic headwinds,” said Stephen Brennock of BVM oil brokerage.
The two benchmarks are heading towards record gains for the second week and Brent crude is close to recording an 8% increase this week. But it is still significantly lower after hitting an all-time high of $ 147 a barrel reached in March following the Russian invasion of Ukraine.
The rise in the dollar added to the pressure on oil prices, amid statements by Federal Reserve officials (the US central bank) that the bank will continue to tighten monetary policy.
A stronger dollar makes oil more expensive for holders of other currencies and affects oil and other risky assets.
Markets are awaiting the U.S. Non-Farm Payrolls report, which will be released later on Friday.
On Thursday, US President Joe Biden expressed his disappointment with OPEC + plans. He and other officials said the United States was studying all possible alternatives to prevent price hikes. (Reuters)
