{"id":901,"date":"2022-07-29T17:19:21","date_gmt":"2022-07-29T17:19:21","guid":{"rendered":"http:\/\/roydadnaft.ir\/English\/?p=901"},"modified":"2022-07-29T17:19:24","modified_gmt":"2022-07-29T17:19:24","slug":"oil-prices-surge-4-a-barrel-as-chances-of-opec-supply-boost-dim","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/901\/","title":{"rendered":"Oil prices surge $4 a barrel as chances of OPEC+ supply boost dim"},"content":{"rendered":"
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Oil prices jumped more than $4 a barrel on Friday as attention turned to next week’s OPEC+ meeting and dimming expectations that the producer group will boost supply.<\/p>\n\n\n\n

Brent crude futures for September settlement, due to expire on Friday, gained $3.29, or 3.1%, to trade at $110.43 a barrel by 11:05 a.m. (1505 GMT) after touching their highest since July 5. The more active October contract was up $4.42 at $106.25.<\/p>\n\n\n\n

U.S. West Texas Intermediate (WTI) crude futures rose $4.85, or 5%, to $101.27 a barrel.<\/p>\n\n\n\n

Both contracts were set for a weekly rise of about 7% but also on track for a second monthly loss, with Brent down 3.8% for July and WTI down 4.2%.<\/p>\n\n\n\n

Stronger stock markets supported oil on Friday, as did a weaker dollar , which makes oil cheaper for buyers with other currencies.<\/p>\n\n\n\n

“These days, there has been a lot of macro influences on the oil market with the stock market making a nice rebound and a similar fall in the dollar feeding into (today’s prices),” said John Kilduff, partner at Again Capital LLC.<\/p>\n\n\n\n

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Global equities (.MIWD00000PUS)<\/a>, which often move in tandem with oil prices, were up on the hope that disappointing growth figures would encourage the U.S. Federal Reserve to ease up on monetary tightening.<\/p>\n\n\n\n

A Reuters survey forecast Brent would average $105.75 a barrel this year with U.S. crude averaging $101.28.\u00a0<\/p>\n\n\n\n

Front-month Brent futures are selling at a rising premium to later-loading months, a market structure known as backwardation, indicating tight current supply.<\/p>\n\n\n\n

“The oil market in Europe is considerably tighter than in the U.S., which is also reflected in the sharply falling Brent forward curve,” said Commerzbank analyst Carsten Fritsch.<\/p>\n\n\n\n

Investors will watch the next meeting of the Aug. 3 meeting of the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, together known as OPEC+.<\/p>\n\n\n\n

OPEC+ sources said the group will consider keeping oil output unchanged for September, with two saying a modest increase would be discussed.<\/p>\n\n\n\n

A decision not to raise output would disappoint the United States after President Joe Biden visited Saudi Arabia this month hoping for a deal to open the taps.\u00a0<\/p>\n\n\n\n

Analysts said it would be difficult for OPEC+ to boost supply, given that many producers are already struggling to meet production quotas.<\/p>\n\n\n\n

OPEC+ compliance with oil output cut pledges reached 320% in June, Russian Interfax news agency reported, citing a source familiar with the data. It said the group’s combined oil underproduction was 2.84 million barrels per day last month.\u00a0<\/p>\n\n\n\n

Additional reporting by Shadia Nasralla, Sonali Paul in Melbourne and Jeslyn Lerh in Singapore Editing by David Goodman, Louise Heavens and David Gregorio<\/p>\n

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