ALBAWAB – Oil prices rose over the weekend, with Reuters reporting a rebound on Friday, as tensions built over the disruption of Dead Sea shipping operations.
Oil prices rose as much as 1 percent on Friday as tensions persisted in the region, though Angola's decision to leave OPEC raised questions over whether the group will be able to bolster prices.
The Organization of Petroleum Exporting Countries and its allies including Russia (OPEC+) announced on November 30 that they will be extending voluntary cuts and adding new ones for the first quarter of 2024. All in an effort to stabilize oil prices.
Saudi Arabia, the group’s largest producer, extended its voluntary cut of 1 million bpd until the end of March next year.
Yet, Brent is still down nearly 4 percent since OPEC+ announced the cuts of 2.2 million barrels per day last month.
Brent crude futures were up $0.71, or 0.89 percent, to $80.10 a barrel at 1140 GMT ahead of Friday's earlier 1230 GMT close ahead of the holiday weekend, according to Reuters.
Oil prices up on tensions over Dead Sea shipping disruption - Shutterstock
Meanwhile, United States (US) West Texas Intermediate (WTI) crude futures were up $0.81, or 1.1 percent, at $74.70 a barrel.
At its intra-day peak, WTI traded $1 higher than Thursday's close, Reuters reported.
Oil prices were also aided by a fall in the US dollar, down at the lowest levels since July.
Meanwhile, the US has hit historical output highs and unexpected inventory levels, while observers expect production to exceed demand in the new year.
On the other hand, disruption of Dead Sea shipping operations has supported oil prices las week and more so over the weekend, as more carriers opted out of the Bab al-Mandeb-Suez Canal route.
About 12 percent of the seaborne oil trade and 8 per cent of liquefied natural gas pass through Bab al-Mandeb, the strait at the southern edge of the Red Sea.
