LONDON: Oil prices rose on Friday after the OPEC+ group decided to keep its production policy unchanged, but the benchmark remained on track for a weekly loss on fears of increased China demand.
Brent crude futures were up 50 cents, or 0.6%, at $79.20 a barrel at 1001 GMT and U.S. West Texas Intermediate crude futures were up 47 cents, or 0.6%, at $79.20.
The Brent benchmark had reached close to $ 85 per barrel in Monday’s trading.
Two OPEC+ sources said on Thursday that the group has kept its production policy unchanged and will decide in March whether to extend voluntary oil production cuts for the first quarter.
The Organization of the Petroleum Exporting Countries (OPEC) and its Russia-led allies, jointly known as OPEC+, have cut production by 2.2 million barrels per day (bpd) for the first quarter as announced in November. .
“What was already made clear last year is that those cuts will be gradually rolled back,” said UBS analyst Giovanni Stanovo. He said the bank expects expansion in the second quarter.
Oil prices were also supported by the US Federal Reserve’s decision to keep the benchmark overnight interest rate in the 5.25-5.50% range and comments by Fed Chairman Jerome Powell that interest rates had peaked and will move lower in the coming months. Will happen.
Lower interest rates would reduce consumer borrowing costs, which could boost economic growth and oil demand.
However, oil prices were still headed for a weekly loss of about 5% and contracts fell more than 2% on Thursday after unconfirmed reports of a ceasefire between Israel and Hamas.
Concerns about China’s economic recovery remain persistent, with the International Monetary Fund projecting on Friday that the country’s economic growth will slow to 4.6% in 2024 and fall to a moderate level of about 3.5% in 2028.
Meanwhile, a military spokesman for the Iran-aligned Houthi group said on Thursday that attacks on shipping would continue until Israel’s “siege on the Gaza Strip is lifted”.
