Oil drops as global economy looms over market, says Al Attiyah Foundation – The Peninsula

Oil drops as global economy looms over market, says Al Attiyah Foundation – The Peninsula

Doha: Oil prices rebounded slightly on Friday on expectations that Opec+ will discuss output cuts at a meeting on September 5. However, concerns over China’s COVID-19 curbs and weakness in the global economy loomed over the market. Brent crude futures settled at $93.02 a barrel, while US West Texas Intermediate (WTI) crude futures settled at $86.87. Both benchmarks posted a weekly drop of 7.9 percent, and 6.7 percent respectively.

Weekly charts show a bearish market with US crude futures surpassing last week’s high, only to retreat and close below last week’s closing level. Opec+ are due to meet on September 5 against a backdrop of expected declines in demand, though top producer Saudi Arabia says supply remains tight. Sources believe that Opec+ is likely to keep output quotas unchanged for October, although some sources would not rule out a production cut to bolster prices that have slid from the sky-high levels hit earlier this year.

Meanwhile, Iran said it has sent a “constructive” response to US proposals aimed at reviving Tehran’s nuclear deal, although Washington gave a less positive assessment. The news made some investors skeptical that a deal was imminent, which gave oil some support.

Asian spot liquefied natural gas (LNG) prices