Oil prices jumped nearly four percent on Friday to a five-week high, backed by OPEC+’s decision to cut its biggest supply since 2020, despite concerns about a recession and high interest rates. .
Oil rose for a fifth straight day as the dollar rose after data showed the US economy was adding jobs at a strong pace, amid expectations that the Federal Reserve will continue to tighten its monetary policy. strengthened Dad.
A stronger dollar makes oil more expensive for holders of other currencies, typically affecting oil and other riskier assets.
The price of Brent oil futures increased by $3.50 or 3.7% to $97.92 per barrel. US West Texas Intermediate (WTI) crude oil rose $4.19, or 4.7%, to $92.64 per barrel.
This was the highest closing level for Brent since August 30 and for US crude since August 29. The two decades recorded an increase for the second week in a row and the largest percentage increase since March this week. Brent rose about 11% and US crude rose 17% during the week.
“One of the main implications of the recent OPEC cuts is a possible return to $100,” said Stephen Burnock of oil brokerage BVM.
The reduction in the decision by the OPEC+ bloc, which includes the Organization of the Petroleum Exporting Countries (OPEC), comes before the EU ban on Russian oil, which will reduce supply in a market that is already suffering from a supply shortage.
US President Joe Biden expressed his disappointment with the plans of OPEC+ on Thursday. He and other officials said the U.S. was considering all possible options to prevent price increases.
Source: Lebanon Debate
