Oil closed positive on expectations that OPEC may cut production and better-than-expected U.S. economic data

Crude oil futures closed higher on Friday (Aug. 26), buoyed by Saudi Arabia’s signal that OPEC countries may cut oil production. Investors are bracing for Federal Reserve Chairman Jerome Powell’s (Fed) warning about the prospect of a slowdown in the economy.

  • WTI crude futures rose 54 cents, or 0.6%, to $93.06 a barrel and are up 2.9% for the week.
  • BRENT crude futures rose $1.65, or 1.7%, to $100.99 a barrel and gained 4.4% for the week.

The United Arab Emirates is the latest OPEC member to join Saudi Arabia’s thinking on the oil market situation. On Monday, Saudi Arabia pointed to the possibility of cutting oil production if Iran resumes exporting oil to world markets.

U.S. Fed Chairman Powell stated that it may be necessary to raise interest rates for a while to combat inflation, which could slow the economy, weaken the labor market and affect households and businesses.

The U.S. Department of Commerce reported Friday that the personal consumption expenditures (PCE) index, which excludes the food and energy category, rose 4.6% year over year in July, slowing from 4.8% in June.

The U.S. Department of Commerce also announced that personal spending by U.S. consumers increased 0.1% in July, following a 1.0% increase in June, while personal income rose 0.2% in July.

In addition, the University of Michigan survey showed that the consumer sentiment index rose to 58.2 in August from 51.5 in July.

The Spot Market is Closed

Saturday, August 27, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
12.30

92.97

+0.45

+0.49%

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