{"id":5886,"date":"2023-06-08T14:28:28","date_gmt":"2023-06-08T14:28:28","guid":{"rendered":"http:\/\/roydadnaft.ir\/English\/?p=5886"},"modified":"2023-06-08T14:31:47","modified_gmt":"2023-06-08T14:31:47","slug":"oil-rises-as-saudi-cut-supports-and-focus-turns-to-fed","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/5886\/","title":{"rendered":"Oil rises as Saudi cut supports and focus turns to Fed"},"content":{"rendered":"
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Roydad Naft News Agency – Oil prices rose on Thursday as tighter supply resulting from Saudi Arabia’s pledged production cut and a potential pause to U.S. interest rate hikes offset worries over demand weakness and a global economic slowdown.<\/p>\n\n\n\n

At an OPEC+ meeting on Sunday, Saudi Arabia said it will cut its crude output by 1 million barrels per day (bpd) in July on top of a broader deal to limit supply into 2024 as the producer group seeks to boost flagging prices.<\/p>\n\n\n\n

Brent crude rose 25 cents, or 0.3%, to $77.20 a barrel by 1328 GMT. U.S. West Texas Intermediate crude gained 20 cents, or 0.3%, to $72.73.<\/p>\n\n\n\n

“With the OPEC+ meeting out of the way, focus is now shifting towards the next move the Fed will make when it meets next week,” said Tamas Varga of oil broker PVM.<\/p>\n\n\n\n

There is growing consensus that the central bank will skip a rate hike, which could lift oil prices even before falling supply starts draining global oil inventories, Varga added.<\/p>\n\n\n\n

Economists polled by Reuters expect that the U.S. Federal Reserve will not raise interest rates at its June 13-14 meeting. But a significant minority expects at least one more increase this year.<\/p>\n\n\n\n

Still, a surprise rate increase in Canada gave investors their second reminder of the week – following the Australian central bank’s monetary policy tightening – that the surge in global interest rates is not done yet.<\/p>\n\n\n\n

“Oil prices have been attempting to recover lately,” said IG market strategist Yeap Jun Rong. “But it has been a struggle.”<\/p>\n\n\n\n

The U.S dollar was slightly weaker on Thursday, making oil cheaper for buyers holding other currencies.<\/p>\n\n\n\n

Both oil benchmarks settled up about 1% on Wednesday, supported by the Saudi plan, though gains remained capped by rising U.S. fuel stocks and weak Chinese economic data.<\/p>\n\n\n\n

A larger than expected rise in U.S. gasoline inventories raised concern over demand while U.S. crude stockpiles registered a small decline of 451,000 barrels.<\/p>\n

Updated on