Oil mixed over ongoing supply worries, strong dollar


Oil prices were mixed on Wednesday over supply uncertainties as investors await the outcome of the next OPEC meeting amid the group’s supply curbs and concerns about the global economy.

International benchmark Brent crude traded at $75.80 per barrel at 10.07 am local time (0707GMT), a 0.59% loss from the closing price of $76.25 a barrel in the previous trading session on Tuesday.

The American benchmark West Texas Intermediate (WTI) traded at the same time at $70.91 per barrel, up 1.60% from the previous session’s close of $69.79 per barrel.

Price increases were driven by supply woes after Saudi Arabia announced its intention to unilaterally extend its production cuts of 1 million barrels per day (bpd) through August, leaving the door open for further extensions.

Russia followed suit with an announcement of a voluntary reduction of its oil exports by 500,000 bpd in August, on top of the 700,000 bpd of cuts in place since March.

Algeria later said it would also reduce output by an extra 20,000 bpd in August, bringing its total output cut to 68,000 bpd since April.

The new restrictions come amid concerns about dwindling oil supplies and deteriorating global economies as a result of high inflation and rising interest rates to combat it.

Investors are now monitoring the 8th OPEC International Seminar, where participants from leading producing countries and major companies will hold high-level discussions on the most pressing issues regarding the energy sector.

Strong dollar pushes prices down

Dollar-indexed oil prices came under downward pressure from the rising value of the greenback.

The US dollar index, which measures the value of the American dollar against a basket of currencies, including the Japanese yen, British pound, Canadian dollar, Swedish krona, and Swiss franc, rose 0.05% to 102.79.

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