Oil rises on Saudi oil production expectations – The Peninsula
- Date: 15-Jul-2022
- Source: The Peninsula Qatar
- Sector:Oil & Gas
- Country:Saudi Arabia
Oil rises on Saudi oil production expectations – The Peninsula
LONDON: Oil prices rose on Friday after a US official told Reuters an immediate Saudi oil output boost is not expected, with further support from indications that the US central bank could raise interest rates less aggressively than anticipated.
Brent crude futures for September delivery rose 76 cents, or 0.77%, to $99.86 a barrel by 0929 GMT while WTI crude rose 28 cents, or 0.29%, to $96.06.
The US Federal Resreve's most hawkish policymakers on Thursday said they favoured a rate increase of 75 basis points at its policy meeting this month, not the bigger increase traders had priced in after a report on Wednesday showed inflation was accelerating.
The interest rate uncertainty and weak economic data led to Brent and WTI shedding more than $5 on Thursday to less than the closing price on Feb. 23, the day before Russia invaded Ukraine, though both contracts clawed back nearly all the losses by the end of the session.
The US official's comment on Saudi oil production comes at a time when capacity at members of the Organization of the Petroleum Exporting Countries (OPEC) is running low, with most producers pumping at maximum capacity.
US President Joe Biden, meanwhile, is visiting Saudi Arabia to attend a
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