Oil Prices Surge: Oil prices are rising again for the sixth week. Saudi Arabia and Russia agreed to cut oil production until next month.
Brent oil for October rose 0.1% to $85.24 at 3:30 GMT. September West Texas Intermediate crude increased 0.2% to $81.72 per barrel.
Brent rose 15.4% and WTI 18.2% in six weeks. Their longest streak of weekly increases this year.
Saudi Arabia and Russia, the world’s second and third major gasoline suppliers, will cut production. This raised oil prices. Russian Deputy Prime Minister Alexander Novak announced a 300,000-bpd cut in oil exports in September. He also said Saudi Arabia would cut 1 million bpd till September.
OPEC+’s Joint Ministerial Monitoring Committee likely won’t adjust its oil output strategy on Friday. Saudi Arabia and Russia are cutting output, raising oil prices.
White House national security adviser John Kirby said the U.S. would continue cooperating with oil producers and consumers to expand the energy market. The US is the world’s top oil producer and user, making it a key energy actor.
Read More: July Employment Report: U.S. Job Growth Slows, Economy Aims for ‘Goldilocks’ Balance
Despite the recent rise in oil prices, U.S. data shows fewer job openings and slower service sector growth. These factors might slow the economy, lowering oil demand and costs.
The strong dollar has lowered oil prices. Due to the strong employment market, some question whether the Fed would tighten monetary policy. OANDA specialist Edward Moya raised this issue.
The Bank of England raised its interest rate to its highest level in 15 years in July as eurozone corporate growth stalled. Both developments complicate the global economy. If firms and consumers pay more to borrow money, it may slow the economy and reduce oil consumption.
Due to demand and limited supply, oil prices may rise. CMC markets analyst Tina Teng said many reasons might raise oil prices.
The upcoming U.S. employment report might provide light on the economy and oil demand and pricing. It also affects market sentiment.