ANKARA, Sept 5 — Oil prices climbed today due to speculation that the OPEC+ group may delay planned production increases.
Additionally, concerns about a potential recession in the United States (US), anticipated interest rate cuts from the US Federal Reserve, and data showing a decline in US crude oil inventories supported the price surge, reported Anadolu Agency.
International benchmark Brent crude increased 0.55 per cent to US$73.02 per barrel at 10.32am local time (0732 GMT), up from the previous session's close of US$72.62.
US benchmark West Texas Intermediate rose 0.47 per cent to US$69.19 per barrel, after closing at US$68.86 in the prior session.
Oil prices rose amid rising prospects that the OPEC+ group, which consists of OPEC and some non-OPEC producing countries, might postpone the production increase planned to start in October.
The expectation feeds the supply concerns of market players and supports the upward movement of oil prices.
Concerns that the US economy might cool faster than expected also continue to support upward price movements by contributing to the rise in risk perception in the oil market.
Meanwhile, it is considered certain that the US Fed will cut interest rates by 100 basis points by the end of the year, estimates that it might cut interest rates by 50 basis points in September have increased to 45 per cent.
Growing expectations that the US Fed will cut interest rates this month lent upward support to prices, as a rate cut would likely weaken the US dollar against other currencies, positively impacting oil demand.
The US dollar index fell by 0.10 per cent to 101,27 at 10.22 am local time (0722 GMT), compared to the previous trading session.
On the other hand, the American Petroleum Institute data showed a 7.4 million barrel fall in US crude oil inventories, against the market prediction of a 900,000 barrel draw.
The fall in US commercial crude oil reserves supported upward price movements by reflecting market perceptions of stronger domestic demand. If the Energy Information Administration confirms a fall in crude oil inventories later in the day, prices are likely to rise further.
— Bernama
