Oil Prices Rise as Saudi Arabia and Russia Maintain Output Cuts

Early Asian trade on Friday saw a rise in oil prices, setting the stage for a sixth consecutive week of gains as major producers Saudi Arabia and Russia maintained production cuts. 

As of 8:36 AM Bangkok Time, oil futures for both Brent and West Texas Intermediate had risen by 0.3% to $85.45 per barrel and 0.4% to $81.91 per barrel, respectively. For the week, estimates called for gains of 0.5% and 1.6% for the two contracts.

Both Saudi Arabia and Russia, two of the world’s largest oil producers, said on Thursday that they planned to extend their respective supply cuts through at least the end of December. Russia will reduce oil exports by 300,000 bpd, while Saudi Arabia will keep output cuts at 1 million bpd.

The two largest members of the cartel have also signaled the possibility of deeper cutbacks to push up oil prices, shortly before Friday’s meeting of the Organization of Petroleum Exporting Countries and allies, or OPEC+. It is anticipated, however, that the cartel would make no changes to its total output on Friday.

Oil prices were expected to rise for a sixth week in a row, but their upward momentum has halted in recent sessions due to the strengthening dollar. In addition, gains were restrained as traders hunkered down ahead of July’s crucial nonfarm payrolls report.