May 28, 2023

Dubai Week

Complete Dubai News World

Oil settles with gains for third week after OPEC + decision – Al-Qat newspaper

Oil prices closed little changed but posted gains for a third week in a row, as markets oscillated between further production cuts targeted by OPEC+ and falling US oil inventories on the one hand, and worries about the global economic outlook on the other.

Brent crude was up 13 cents, or 0.2%, at $85.12 a barrel.

U.S. West Texas Intermediate crude was up 9 cents, or 0.1%, at $80.70. And tomorrow is a holiday for Good Friday.

Both benchmarks rose more than 6% this week after OPEC+, which includes allies including the Organization of the Petroleum Exporting Countries (OPEC) and Russia, surprised the market on Sunday with pledges to cut output.

Hedge funds bought crude oil throughout the week, returning to “dangerous” levels, said Dennis Kessler, senior vice president of trading at BOK Financial.

Prices were supported by a sharper-than-expected decline in US crude inventories last week, a second straight week of declines.

Gasoline and distillate inventories also fell, indicating higher demand.

However, gains were dampened by a slowdown in economic growth and US labor market data indicating slower-than-expected growth in the service sector in the US.


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