Oil prices rose on Friday on expectations that OPEC+ would discuss production cuts at its meeting on September 5, although concerns over China’s COVID-19 lockdowns and a weak global economy limited progress. .
* Brent crude futures were up $2.01, or 2.2%, at $94.37 a barrel and U.S. West Texas Intermediate (WTI) crude futures were up $2, or 2.3% , at $88.61.
* Both contracts fell 3% to two-week lows in the previous session. Brent was headed for a weekly decline of almost 6%, while WTI was headed for a decline of around 5% on the week.
* The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known jointly as OPEC+, will meet on September 5 in a context in which a drop in demand is expected, although the main producer, Saudi Arabia, affirms that supply is still scarce.
* “Oil prices are up today… The rebound is because the Iran-US nuclear talks appear to have stalled,” said Craig Erlam, senior market analyst at OANDA.
* “A deal has been a big downside risk to oil prices recently — something Saudi tried to counter with warnings of alliance production cuts.”
* The market is also attentive to the possibility of limiting the prices of Russian oil exports. G7 finance ministers are expected to finalize plans on Friday to impose a price cap on Russian crude to curb revenue from Moscow’s war in Ukraine, but keep crude flowing to prevent price hikes.
* Meanwhile, investors remain concerned about the impact of the latest COVID-19 restrictions in China. The city of Chengdu ordered a lockdown on Thursday that has affected manufacturers such as Volvo.