Last Update: May 26, 2023, 23:44 IST
New York, United States (USA)
The benchmark had shed more than $2 a barrel on Thursday after Russian Deputy Prime Minister Alexander Novak downplayed the prospect of further OPEC+ production cuts. (Image: Reuters file)
Brent crude was up 39 cents, or 0.5%, at $76.66 a barrel at 01:36 ET (1736 GMT).
Oil prices edged up on Friday as US officials edged closer to setting a debt ceiling, and markets weighed conflicting messages on supplies from Russia and Saudi Arabia ahead of the next OPEC+ policy meeting.
Brent crude was up 39 cents, or 0.5%, at $76.66 a barrel at 01:36 p.m. ET (1736 GMT). US West Texas Intermediate rose 56 cents, or 0.8%, to $72.38 a barrel.
Both prices were poised to post a second week of gains. A deal to raise the US debt ceiling, which appears to be in sight, is likely to boost oil prices.
However, gains were capped on concerns about an interest rate hike by the Federal Reserve the following month, which would curb demand after a stronger-than-expected increase in US consumer spending in April and a rise in inflation.
The benchmark had shed more than $2 a barrel on Thursday after Russian Deputy Prime Minister Alexander Novak downplayed the prospect of further OPEC+ production cuts at their meeting in Vienna on June 4.
Russia was leaning toward leaving oil production volumes unchanged because Moscow is satisfied with current prices and production, three sources with knowledge of current Russian thinking told Reuters.
This contrasted with earlier indications of a possible output cut by Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman, the de facto leader of the Organization of the Petroleum Exporting Countries (OPEC), who warned short sellers to “watch out”.
Betting on falling oil prices has intensified.
“I think we are all cautious ahead of the OPEC meeting next week,” said John Kilduff, partner at Again Capital.
While there is a sense that the White House and congressional Republicans will reach an agreement to raise the US government’s $31.4 trillion debt limit, it could take another day or at least a few more hours, Kilduff said.
Wall Street’s main indexes also rose on progress in debt ceiling talks.
Gasoline demand is expected to remain strong, with motorist group AAA predicting the May 27-29 US Memorial Day holiday weekend will be the third busiest for auto travel since 2000.
US oil rigs fell by five to 570 this week, according to a report from energy services firm Baker Hughes Co. In May, the oil count declined by 21 rigs, the biggest monthly decline since June 2020.
Slowing economic growth and stagnant inflation in Europe is another factor driving the European Central Bank’s need for at least two more 25-basis-point interest rate hikes, Dutch central bank chief Klaas Knut said.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – reuters,
