Oil up on signs of improving demand

Oil prices rose by as much as a dollar today, Friday, supported by indications of improving fuel demand, but gains were limited as the market awaited messages from the head of the Federal Reserve (the US Central Bank) regarding expectations of a rate hike in a speech he delivers later in today.

By 0410 GMT, Brent crude futures rose 87 cents, or 0.9%, to $100.21 a barrel. West Texas Intermediate crude futures rose 88 cents, or 0.9%, to $93.40 a barrel. The two crudes jumped in early trade by as much as a dollar a barrel, after falling by about two dollars on Thursday

According to “Reuters”, despite the uncertainty related to the pace of raising interest rates in the United States to control inflation, concerns about undermining oil demand have receded this week, which puts the two contracts on the path of recording gains of about 3% during the week.

Prices were also supported by expectations that the Organization of the Petroleum Exporting Countries (OPEC) would impose production restrictions to offset the impact of increased production in Iran.

Meanwhile, sources said the potential production cuts in the OPEC+ cartel discussed by Saudi Arabia this week will likely coincide with Iran’s return to oil markets if Tehran reaches a nuclear deal with the West.