Singapore, September 6 (FFN) – Oil prices increased only marginally on Friday as investors remained cautious ahead of the release of key U.S. employment data. This comes after the OPEC+ alliance decided to delay plans to raise oil production in October and November. The market is closely watching for any shifts in production strategy by OPEC+, which has left the door open to halting or even reversing the planned output increases if necessary.
On the demand side, a weakening U.S. dollar provided some support for oil prices, as the dollar hit a near one-week low following mixed labor market data. A weaker dollar typically makes oil more affordable for buyers using other currencies, which can help bolster demand.
As of 7:34 a.m. CET on Friday, the price of a barrel (159 liters) of West Texas Intermediate (WTI) crude for October delivery traded at $69.18, up by 3 cents or 0.04% compared to the previous day’s close. Similarly, the Brent crude November contract saw a 3-cent increase, reaching $72.72 per barrel.
Insights and Implications:
While the increase in oil prices was minimal, it reflects underlying market uncertainties. OPEC+ continues to play a critical role in stabilizing global oil prices, especially with its cautious stance on production. Additionally, the strength of the U.S. dollar remains a key driver in shaping oil demand. The currency’s fluctuations affect purchasing power for countries that use other currencies to import oil. A weaker dollar, as seen this week, typically supports higher oil demand, as buyers can afford more at lower relative costs.
Looking ahead, the outcome of the U.S. employment data will likely have an immediate impact on the oil market, influencing broader economic sentiment and possibly prompting further action from OPEC+ if global demand weakens.
Key Figures:
| Commodity | Price (USD/barrel) | Change | Percentage |
|---|---|---|---|
| WTI (October) | $69.18 | +3 cents | +0.04% |
| Brent (November) | $72.72 | +3 cents | +0.04% |
Keywords: oil prices, OPEC+, WTI crude, Brent crude, U.S. dollar, global demand, employment data, oil market.
