Oil prices rose in European trading on Friday as attention turned to this week’s OPEC+ meeting and expectations that the meeting will dash US hopes for a supply boost.
Brent crude futures for September, which expired on Friday, gained $2.30 to trade at $109.44 a barrel after hitting their highest level since July 5. The October contract rose $2.24 to $104.07. writes Reuters.
U.S. West Texas Intermediate (WTI) crude futures rose $2.20 to $98.62 a barrel.
Both contracts are on track for their second straight month of losses, down 4.7% and 6.8%, respectively.
Why is the price of oil rising?
A weaker dollar and stronger stocks also provided support for the price. A falling dollar makes oil cheaper for buyers in other currencies.
Global stocks, which often move in tandem with oil prices, rose on hopes that US monetary tightening will not be as harsh as initially expected after disappointing economic growth numbers.
A Reuters poll forecast Brent and U.S. crude to average $105.75 and $101.28 a barrel this year, respectively.
A key factor will be the next meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its Russian-led allies, grouped together as OPEC+, on August 3.
It is not clear how the price will evolve further
OPEC+ sources said the group would consider keeping oil output unchanged for September, and two OPEC+ sources said a modest increase would be discussed.
A decision not to raise production would disappoint the United States after US President Joe Biden visited Saudi Arabia this month in hopes of reaching an agreement to open the taps.
However, analysts said it would be difficult for OPEC+ to increase supply, given that many producers are already struggling to meet production quotas.