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Oil prices rise as supplies decrease
02 April 2023, 07:00am
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liquefied natural gasUS inflation dataAl-Attiyah Energy CorporationFederal Reserve
Doha – East
The weekly report issued by Al-Attiyah Energy Corporation said: Oil prices rose by more than a dollar per barrel on Friday, recording an increase for the second week in a row, in light of the scarcity of supplies in some production areas, and US inflation data that indicate a slowdown in inflation. Brent crude futures prices rose by 50 cents to settle at $79.77 a barrel, a weekly increase of 6.4 percent. While West Texas Intermediate crude settled at an increase of $1.30 to settle at $75.67 a barrel, achieving a weekly increase of 9 percent. The data showed that US personal consumption expenditure (PCE), the Fed’s preferred inflation measure, rose 0.3 percent month-on-month in February, compared to a 0.6 percent rise in January. The emergence of signs of slowing inflation usually leads to a rise in oil prices, as this could indicate a failure to raise interest rates by the Federal Reserve, which thus enhances investor demand for risky assets such as commodities and stocks. On the other hand, oil prices rebounded after producers shut down or cut production at several oil fields in the semi-autonomous Kurdistan region in northern Iraq following the disruption of the northern export pipeline. With prices recovering from low levels, the Organization of the Petroleum Exporting Countries and its allies are likely to stick to the current production pact when they meet next Monday.
Oil prices rise as supplies decrease
