Oil Prices Rise on Supply Concerns and Economic Growth
Major Producers Maintain Output Cuts
Oil prices increased Thursday on worries about reduced supply as key producers continue output cuts and signs of a stronger U.S. economic growth.
Futures for June climbed 31 cents to $89.66 a barrel, with U.S. West Texas Intermediate (WTI) futures for May rising 30 cents to $85.73 a barrel, data at 0443 GMT showed.
OPEC+ Meeting Keeps Supply Policy Unchanged
Top ministers from OPEC+ maintain status quo
The Organization of Petroleum Exporting Countries and its allies, including Russia, decided to keep oil supply policy unchanged on Wednesday, pressing for higher compliance with output cuts.
Market Reaction and Analysts Predictions
ING Analysts Optimistic on Oil Prices
ING analysts noted that oil prices continued to rise after the meeting suggested no changes to output policy, with both Brent and WTI contracts increasing for the fourth consecutive day.
Federal Reserve Chair Jerome Powell’s cautious stance on interest rate adjustments due to robust job growth and inflation provided a positive outlook for oil, indicating solid U.S. economic performance, according to Rob Haworth, a senior investment strategist.
Geopolitical Factors Impacting Oil Prices
Ukraine-Russia Conflict and Middle East Tensions
Recent Ukrainian attacks on Russian refineries and concerns that conflicts in Gaza may escalate to involve Iran have added pressure to oil prices. Iran, as OPEC’s third-largest producer, vowed retaliation against Israel for an attack earlier in the week.
“The recent rise in tension in the Middle East has not altered the group’s view on the market,” said ANZ analysts regarding the OPEC+ decision.
