(MENAFN- Trend News Agency)
Oil prices dipped on Friday after two days of gain, as market
participants weighed worries about global economic slowdown - that
could dampen fuel demand - against expectations of tighter supplies
toward year-end, Trend reports with reference to Reuters .
Brent crude futures fell 36 cents, or 0.4%, to $96.23 a barrel
by 0309 GMT after settling 3.1% higher on Thursday. U.S. West Texas
Intermediate crude was at $90.29 a barrel, down 21 cents, or 0.2%,
following a 2.7% increase in the previous session.
Still, the benchmark contracts were headed for weekly losses of
about 1.5%.
While bullish U.S. weekly data bolstered optimism for improved
fuel demand for the near-term, lingering recession fears and a
possible increase in output by OPEC+ will likely limit oil price's
upside, said Satoru Yoshida, a commodity analyst with Rakuten
Securities.
U.S. crude inventories fell sharply as the nation exported a
record 5 million barrels of oil a day in the most recent week, with
oil companies finding heavy demand from European nations looking to
replace crude from warring Russia.
Keeping crude supplies snug, U.S. oil refineries plan to keep
running near full throttle this quarter, according to executives
and estimates, as refiners set aside worries about recession and
sliding retail prices to deliver more fuel.
The rise in U.S. fuel production could partly offset lower oil
products exports from China this year as Beijing prioritises the
local market to curb domestic fuel inflation.
On supplies, Haitham Al Ghais, new secretary general of the
Organization of the Petroleum Exporting Countries, told Reuters
that policymakers, lawmakers and insufficient oil and gas sector
investments are to blame for high energy prices, not his group.
The group together with allies such as Russia, known as OPEC+,
are due to meet on Sept. 5 to adjust production. OPEC is keen to
ensure Russia remains part of the OPEC+ oil production deal after
2022, Al Ghais said.
In a sign of improving supplies, the price gap between prompt
and second-month Brent futures narrowed about $5 a barrel from the
end of July.
Record U.S. crude exports, the resumption of Libya's production
and sustained exports from Russia and Iran have eased global supply
tightness ahead of peak refinery maintenance.
Russia forecasts rising output and exports until the end of
2025, an economy ministry document seen by Reuters showed, saying
revenue from energy exports will rise 38% this year, partly due to
higher oil export volumes.
Iran, meanwhile, increased its oil exports in June and July and
could raise them further this month by offering a deeper discount
to Russian crude for its main buyer China, firms tracking the flows
said.
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