Crude oil futures closed higher on Friday (September 2). Investors look to the meeting of OPEC and OPEC+ on oil production policy on Monday (September 5).
- WTI crude futures rose 26 cents, or 0.3%, to $86.87 a barrel. This week, however, it fell 6.6%.
- BRENT crude futures rose 66 cents, or 0.7%, to $93.02 a barrel, but fell 6.1% for the week.
OPEC and OPEC+ are likely to maintain production in October due to tight oil supplies, although many members are calling for production cuts to support oil prices in the market.
OPEC and OPEC+ are expected to increase their oil production by 100,000 barrels per day in October, unchanged from September. Previously, OPEC+ increased production by 648,000 barrels per day in July and August, compared with a 432,000 barrel per day increase in June.
Last month, the Saudi energy minister signaled that crude oil contracts and fundamentals were at odds. He said OPEC has found a way to address the challenges, including production cuts to balance the market.
In addition, oil prices were also supported by concerns about an interest rate hike by the Federal Reserve after weaker labor market figures were released on Friday. Investors lowered their expectations that the Fed will raise interest rates by 0.75% at its September monetary policy meeting.
The U.S. Bureau of Labor Statistics said Friday that nonfarm payrolls rose by 315,000 in August, after increasing by 526,000 jobs in July.
The Spot Market is Closed
Saturday, September 3, 2022