Oil prices rise on signals OPEC might cut output

An aerial view exhibits an oil manufacturing unit of Idemitsu Kosan Co. in Ichihara, east of Tokyo, Japan November 12, 2021, on this picture taken by Kyodo. Necessary credit score Kyodo/by way of REUTERS

NEW YORK, Aug 26 (Reuters) – Oil costs ended increased on Friday, boosted by alerts from Saudi Arabia that OPEC might reduce output, however buying and selling was risky as buyers digested and in the end shrugged off warnings from the top of the U.S. Federal Reserve about financial ache forward.

Brent crude futures rose $1.65 to settle at $100.99 a barrel. U.S. West Texas Intermediate (WTI) crude futures rose 54 cents to settle at $93.06 a barrel. Each contracts rose and fell by $1 all through the session.

Total, Brent gained 4.4% for the week, whereas WTI was set to rise 2.5%.

The United Arab Emirates turned the most recent OPEC+ member to state it’s aligned with Saudi Arabia’s considering on crude markets, a supply with data of the matter informed Reuters. learn extra

On Monday, Saudi Arabia flagged the potential for manufacturing cuts to offset the return of Iranian barrels to grease markets ought to Tehran clinch a nuclear take care of the West. learn extra

“The impression stays that Saudi Arabia just isn’t prepared to tolerate any value slide under $90. Speculators might view this as an invite to wager on additional value rises with out the necessity to concern any extra pronounced value declines,” Commerzbank stated in a observe.

Oil costs briefly fell after Fed Chair Jerome Powell stated tight financial coverage could also be in retailer “for a while” to struggle inflation, which means slower development, a weaker job market and “some ache” for households and companies. learn extra

Knowledge has proven some small decline in inflation, with the Fed’s private consumption expenditures value index falling in July to six.3% on an annual foundation, from 6.8% in June. Inflation expectations primarily based on the College of Michigan’s measures additionally eased in July. learn extra

However “a single month’s enchancment falls far quick” of what the Fed must see, Powell stated.

“The market is anxious that Powell sounded a bit extra hawkish when it got here to inflation,” stated Phil Flynn, an analyst at Value Futures group in Chicago.

In the meantime, some European Central Financial institution policymakers wish to focus on a 75 foundation level rate of interest hike at a Sept. 8 coverage assembly, even when recession dangers loom, because the inflation outlook is deteriorating, 5 sources with direct data of the method informed Reuters. learn extra

In U.S. provide, the oil drilling rig rely, a sign of future manufacturing, rose by 4 to 605 within the week to Aug. 26, Baker Hughes Co stated on Friday. learn extra

Cash managers raised their internet lengthy U.S. crude futures and choices positions within the week to Aug. 23 by 24,215 contracts to 179,039, the U.S. Commodity Futures Buying and selling Fee (CFTC) stated on Friday.

Reporting by Stephanie Kelly in New York; further reporting by Rowena Edwards in London, Sonali Paul in Melbourne and Emily Chow in Kuala Lumpur
Enhancing by Jason Neely, David Goodman, Susan Fenton, David Gregorio and Daniel Wallis

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