Oil prices extended their gains to about 2.5% during trading on Friday, with US crude rising above $80 a barrel.
The rise came after the OPEC + alliance rejected a US call to increase supplies, and maintained plans for a gradual return to production.
Oil prices witnessed a volatile trading session yesterday, Thursday, as it rose by more than 2.5% during trading, before turning to the downside, with a noticeable rise in the US dollar, despite the OPEC + alliance keeping the production policy unchanged, to conclude the session with a decrease of 2.5%.
Oil Prices Today
By 03:15 PM GMT (06:15 PM Mecca Al-Mukarramah), Brent crude futures prices – January 2022 delivery – rose by about 2.1%, recording $82.24 a barrel.
The price of West Texas Intermediate crude futures – for December delivery – rose 2.5%, recording $80.81 a barrel.
The ministers of the OPEC + alliance – led by Saudi Arabia and Russia – agreed during their meeting yesterday, Thursday, to stick to plans to increase oil production by 400,000 barrels per day in December, ignoring calls from US President Joe Biden to increase production to calm rising prices.
“It was an easy and quick OPEC+ meeting on production,” said Edward Moya .
OPEC+, which includes the Organization of the Petroleum Exporting Countries and other major producers including Russia, is restricting supplies after the pandemic evaporated demand.
Oil prices recently touched a 7-year high, but fell earlier this week, on the back of rising US oil inventories and signs that higher prices could encourage more supplies elsewhere.
Brent crude is on its way to a decline of 2% this week, the second consecutive week that the benchmark has fallen, while US crude is heading for a decline of about 3% this week.
With US retail gasoline prices approaching $4 a gallon, a pressure point for American drivers, the onus is on the White House after Biden last Saturday urged major energy producers in the Group of 20 with spare capacity to boost production.
The White House said Washington would consider the full range of tools at its disposal to ensure access to affordable energy after the OPEC+ meeting.
“We can only guess at this point, but I imagine this would include the release of US strategic reserves,” said a Singapore-based energy trader.
On the other hand, the US economy added jobs more than expected, amounting to 531,000 jobs last month, and the unemployment rate declined to 4.6%.
SOURCE : ATTAQQA