New York, Oil prices jumped as much as $1 on Friday, despite signs of rising gasoline consumption, as the market anticipated signals from the US Federal Reserve chairman on the likelihood of rate rises in a speech later in the day.
By 0410 GMT, Brent crude futures had risen 87 cents, or 0.9%, to $100.21 per barrel. WTI crude futures in the United States increased 88 cents, or 0.9%, to $93.40 a barrel. Both futures rose by as much as $1 in early trade after falling by roughly $2 on Thursday.
Despite uncertainty over the pace of rate rises in the United States to combat skyrocketing inflation, concerns about oil demand destruction abated this week, leaving benchmark oil contracts on track for a 3% gain for the week.
According to ANZ Research, statements made by certain US central bank officials before Chairman Jerome Powell’s address on Friday have cast a shadow over the economic outlook.
However, “hints of robust demand are developing,” noted ANZ Research analysts in a report, citing statistics on encouraging road traffic growth.
According to TomTom’s most current Congestion Index data, traffic levels in the Asia-Pacific, Europe, and North America all experienced a considerable weekly rise in the week ending August 24.
According to Baidu statistics, congestion levels in China have also increased.
The idea of the Organization of Petroleum Exporting Countries (OPEC) cutting supply to counter Iran’s increased output boosted prices.
According to Reuters, Saudi Arabia’s proposed OPEC+ production cutbacks this week are expected to coincide with Iran’s return to oil markets if it achieves a nuclear deal with the West.
According to Tina Teng, an analyst at CMC Markets, crude markets may stay sustained because the supply cartel has signaled that it will decrease output if oil prices fall.
The EU is evaluating Washington’s answer to the last offer made by the European Union to resurrect a nuclear agreement, with the EU anticipating a response shortly. However, it is uncertain how fast Iranian oil shipments will begin if an agreement is achieved.
If Iran’s sanctions were repealed, it might take a year and a half to achieve its maximum potential of 4 million barrels per day, an increase of 1.4 million BPD over its present output.
