Crude Oil Prices Edge Higher Ahead of OPEC+ Meeting
Oil prices edged higher in the global commodity market on Friday ahead of the Organisation of Petroleum Exporting Countries (OPEC) and allies members (OPEC+) meeting scheduled for October 5.
The price uptick was basically supported by concerns over the war in Ukraine and the risk of fresh sanctions on Russia, though expectations of an upcoming OPEC+ output hike capped gains.
Brent crude was trading at $64.61 per barrel, up 0.7% from the previous close of $64.19. US benchmark West Texas Intermediate (WTI) increased by 0.7% to $60.89 from $60.48 in the prior session.
Reports said the US will provide intelligence to Ukraine for long-range missile strikes against Russian energy facilities, raising the risk of disruptions to refineries and pipelines.
The Group of Seven (G7) finance ministers on Thursday pledged to step up coordinated economic pressure on Russia over its war in Ukraine, vowing new sanctions and trade measures targeting Moscow and those helping it circumvent restrictions.
In a joint statement issued after a virtual meeting on Oct. 1, the ministers condemned what they called Russia’s “continued brutal war” and “escalatory actions,” including violations of NATO airspace, intensified attacks on civilians, and damage to Ukrainian government and diplomatic buildings.
“Our actions to date, including continued support to the IMF program and the Extraordinary Revenue Acceleration (ERA) Loans, have supported Ukraine’s efforts to withstand Russia’s aggression, and our sanctions have reduced Russia’s revenues,” the statement said.
Meanwhile, investors are watching the Federal Reserve’s (Fed) next steps, though the closely followed US jobs report is not expected on Friday due to the government shutdown.
Treasury Secretary Scott Bessent warned that the closure could weigh on growth, although markets remain buoyed by hopes that it will be short-lived and that rate cuts are on the horizon.
Expectations that OPEC and its allies will agree to raise output during their meeting this weekend limits further price increase.
Investors are awaiting the Oct. 5 OPEC+ meeting, where Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria and Oman are expected to decide November output.
The group agreed last month to raise production by 137,000 barrels a day in October. Analysts say expectations of further increases are reinforcing forecasts of excess supply in global markets.
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