Oil prices rose slightly on Thursday on concerns about reduced supply as OPEC+ continues its production cuts and signs of stronger economic growth in the United States, the world’s largest oil consumer.
Brent futures for June delivery were up 4 cents at $89.39 a barrel at 06:51 GMT. May West Texas Intermediate (WTI) futures rose 2 cents to $85.45 a barrel.
A meeting of senior OPEC+ ministers on Wednesday left oil supply policy unchanged and pressured some countries to increase compliance with production cuts. It was said that some members would compensate for the excess supply in the first quarter. It was also stated that Russia would switch to production instead of export restrictions as refining injured.
Oil prices continued to rise after the OPEC+ meeting recommended no change in production policy. Brent faces some resistance at US$90/barrel and has so far failed to break above this level
Both the June Brent contract and the May WTI contract have been rising for the past four days and closed Wednesday at their highest level since late October.
While investment strategist Rob Haworth said the comments were positive for oil because they pointed to solid U.S. economic growth, Powell, remained cautious about future interest rate cuts because of recent data showing higher-than-expected job growth and inflation.
Oil’s recent gains have followed Ukrainian attacks on Russian refineries that cut fuel supply and concerns that the Israel-Hamas war in Gaza could spread to Iran, possibly disrupting supplies in the key Middle East region.
Iran has vowed revenge on Israel for an attack that killed senior Iranian military personnel on Monday. Iran is OPEC’s third-largest producer.
While the decision of OPEC+ was widely expected, it provides some reassurance that the recent escalation of tensions in the Middle East has not changed the group’s outlook on the market.
