Oil jumps to 5-week high lifted by Opec+ output cut, says Al Attiyah Foundation – The Peninsula

Oil jumps to 5-week high lifted by Opec+ output cut, says Al Attiyah Foundation – The Peninsula

Doha: Oil prices jumped about 4 percent to a five-week high on Friday, lifted again by an Opec+ decision last week to make its largest supply cut since 2020 despite concerns about a possible recession and rising interest rates.

Oil rallied for the fifth day in a row even as the dollar moved higher, after data showing the US economy was creating jobs at a strong pace gave the Federal Reserve a reason to continue hefty interest rate hikes. Brent futures rose $3.50, or 3.7 percent, to settle at $97.92 a barrel, while US West Texas Intermediate (WTI) crude rose $4.19, or 4.7 percent, to end at $92.64.

The Organization of the Petroleum Exporting Countries and allies including Russia, known as Opec+, agreed this week to lower their output target by 2 million barrels per day. The Opec+ cut comes ahead of a European Union embargo on Russian oil and will squeeze supply in an already tight market. Opec Secretary General Haitham Al Ghais said the output target cuts will leave Opec+ with more supply to tap in the event of any crises. On Thursday, US President Joe Biden expressed disappointment over the Opec+ plans. He and US officials said Washington was