Oil prices up as markets mull OPEC+ cuts, US dollar slightly stronger
ALBAWABA – Oil prices rose as the market weighs in the latest output cuts by the Organization of Oil Exporting Countries and its allies (OPEC+) against demand prospects in China, while the US dollar ticked marginally higher.
Brent crude futures climbed $0.17 to $77.37 a barrel by 0709 GMT, according to Reuters, and United States (US) West Texas Intermediate (WTI) crude futures rose $0.06, to $72.38 a barrel.
Both benchmarks closed at their lowest level since July 6 in the previous session, with WTI seeing four consecutive days of declines.
Overall, OPEC+ agreed on voluntary output cuts of about 2.2 million barrels per day (bpd) for the first quarter of 2024 late last week, including an extension of Saudi and Russian cuts of 1.3 million bpd.
US dollar steady, oil prices edge higher - Shutterstock
Meanwhile, the Euro and Pound Sterling were both down against the US dollar, while the Japanese Yen strengthened, from 147.21 per dollar to 147.16, by end of day Tuesday.
The Euro slipped from $1.0836 to $1.0801 and the Pound from $1.2633 to $1.2596, as reported by Agence France-Presse (AFP) early on Wednesday, as the US dollar picked up.
Bloomberg’s US Dollar Index Spot was up 0.02 percent by 1214 Amman Time, at 104.0660.
US dollar stable, oil prices tick up after 4 days of falling as WTI floods the market
Oil steadied in the green on Wednesday after a four-day drop as the US flooded the market with WTI exports, amid doubts over whether OPEC+ will be able to deliver on its output cuts.
According to Bloomberg, the market is oversupplied.
Global benchmark Brent traded above $77 a barrel after slumping by more than 7 percent over the previous four sessions, while WTI was close to $72. American crude shipments are nearing a record 6 million barrels a day, according to estimates from ship-tracking firms, as reported by Bloomberg.
To compete with the flood of American WTI, Saudi Arabia reduced its official selling prices to Asia by the most since February. Still, the cuts were less than expected, which could see some Asian crude buyers turning elsewhere for their supply, Bloomberg warned.
US dollar steady, oil prices edge higher - Shutterstock
Unnamed sources with the industry-funded American Petroleum Institute also confirmed to the New York-based news agency that oil inventories in the US overall rose last week.
Official data is expected to come out later on Wednesday.
Still, Russia’s Deputy Prime Minister Alexander Novak said OPEC+ could take further measures if last week’s agreement isn’t enough to balance the market. Novak spoke a day before he is set to join President Vladimir Putin on a visit to the United Arab Emirates and Saudi Arabia.
