U.S.-based and international crude-oil futures rose on Friday, contributing to a gain for the week, but worries about a recession set prices up for a loss on the month.
Traders also await a decision on production levels by major producers, with the Organization of Petroleum Exporting Countries and their allies scheduled to meet next week.
Price action
-
West Texas Intermediate Crude
CL00,
+2.28% CLU22,
+2.28%
for September delivery gained $2.93, or 3%, to $99.35 a barrel on the New York Mercantile Exchange. Prices based on the front month traded nearly 5% higher for the week, but down 3.6% for the month, FactSet data show. -
Global benchmark September Brent crude
BRN00,
-0.07% BRNU22,
+2.65% ,
which expires at the end of the trading session, rose $2.92, or 2.7%, to $110.06 a barrel on ICE Futures Europe. The October contract
BRNV22,
-0.07%
traded at $104.33, up $2.48, or 2.4%. -
Back on Nymex, August gasoline
RBQ22,
-2.84%
shed 0.4% to $3.4526 per gallon, while August heating oil
HOQ22,
-2.22%
was at $3.6756 a gallon, down 0.3%. The August contracts expire at the end of the session. -
September natural gas
NGU22,
+2.57%
gained 1% to $8.216 per million British thermal units.
What analysts are saying
“Ongoing fears of slowing economic growth continue to fuel the bearish sentiment, with the global commodity” negative month-to-date, Lukman Otunuga, manager, market analysis, at FXTM, told MarketWatch.
Oil looks set to range trade over the coming sessions as investors await the meeting of OPEC and its allies —popularly known as “OPEC+” — expected next week, but some rumors that OPEC+ is planning on leaving its production targets unchanged have helped to bolster crude prices.
“Oil prices are rising again amid reports that OPEC+ will leave output targets unchanged next month when it meets on Wednesday. Some sources did reportedly suggest a small increase would be discussed which would appear to align more with the optimistic view of a US administration official yesterday,” wrote Craig Erlam, a senior market analyst at OANDA.
Read: Why Goldman’s commodity guru Jeff Currie is bullish on oil despite July’s pullback
Also see What’s in store for commodities after losses in July?
Still, the week ahead could be volatile, said Otunuga.
That’s thanks to the OPEC+ meeting, “especially after President Joe Biden’s recent request for Saudi Arabia to increase oil production,” he said.
“Whatever the outcome of the meeting, it could have a strong impact on oil prices,” he said.
Read: Why natural gas may be in store for more price gains after a 50% climb in July