(MENAFN) Oil prices experienced an upward tick on Friday as market participants grappled with conflicting signals regarding the future supply of oil from Russia and Saudi Arabia, leading up to the upcoming policy meeting of the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+. At 13:42 p.m., Brent crude saw an increase of 77 cents, equivalent to 1 percent, reaching USD77.03 per barrel, while US West Texas Intermediate rose by 96 cents, or 1.3 percent, reaching USD72.79 per barrel.
The previous day, benchmark prices had declined by over USD2 per barrel after Russian Deputy Prime Minister Alexander Novak downplayed the likelihood of further production cuts by OPEC+ at their scheduled meeting in Vienna on June 4. Despite this setback, both Brent crude and US West Texas Intermediate remained on track to register a second consecutive week of gains, albeit slightly less than 1 percent. Furthermore, the anticipation of a potential resolution regarding the US debt ceiling, which seemed attainable, was expected to have a positive impact on oil prices.
Russian President Vladimir Putin expressed on Wednesday that energy prices were reaching levels that were economically justifiable, suggesting that there might not be any immediate alterations to the production policies of the OPEC+ group.
In summary, oil prices saw an increase on Friday due to the mixed signals surrounding oil supply from Russia and Saudi Arabia. While benchmarks had experienced a decline the previous day, they were still poised to record modest gains for the second consecutive week. The possibility of a resolution regarding the US debt ceiling was expected to provide further support to oil prices. Furthermore, Russian President Vladimir Putin indicated that energy prices were at economically justified levels, implying that there may be no immediate changes to the production policies of OPEC+.
MENAFN28052023000045014146ID1106332151
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.