Oil prices rise slightly in anticipation of Powell’s speech today

Saudi's statements are supported by the UAE, Sudan
Oil prices rise slightly in anticipation of Powell’s speech today
Crude oil tankers

Oil prices rose by up to a dollar on Friday, boosted by signs of improved fuel demand. However, the gains were limited as the market awaited clues from Federal Reserve Chairman Jerome Powell in his speech later today about the likelihood of a rate hike.

Brent crude futures rose 87 cents, or 0.9 percent, to $100.21 per barrel, according to Reuters. Meanwhile, West Texas Intermediate crude futures gained 88 cents, or 0.9 percent, to $93.40 per barrel. After falling by about two dollars on Thursday, the two crudes rose by as much as a dollar in early trade.

The UAE and Sudan


Reuters reported today, that an informed source in the UAE agrees with Saudi’s thinking on oil markets and supports its recent statements.

On Monday, Saudi hinted at the possibility of beginning to reduce production in order to restore market balance, which it described as ‘schizophrenia.’

Sudan joined the OPEC countries in supporting Saudi Arabia’s statements. Sudanese Energy and Oil Minister Mohamed Abdullah announced this week his Saudi counterpart’s statements about OPEC’s willingness to intervene to restore the oil market balance.

In a statement, the Sudanese minister stated that his country supports OPEC+’s efforts to maintain market stability in the face of distortions and fluctuations. According to Reuters, he also emphasized the significance of statements “made by the Saudi Energy Minister regarding market instability and price volatility.”

Sudan, which is a member of OPEC+, also expressed its full support for the mechanism established by the OPEC+ alliance, “which provided the necessary tools to stimulate the adjustment of oil production and face all market challenges,” according to the statement.

Iraq, Algeria, Libya, Kazakhstan, Azerbaijan, Venezuela, Congo, and Equatorial Guinea issued similar statements ahead of the OPEC+ meeting, which will be held on September 5th and will include OPEC members as well as other producers, including Russia.

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