After days of losses, oil prices stabilize globally
Shafaq News / Oil prices experienced minimal fluctuations, reflecting ongoing uncertainty surrounding OPEC+'s voluntary output cuts, ongoing geopolitical tension in the Middle East, and concerning economic indicators from the US Brent crude futures marginally decreased by 1 cent to $78.02 a barrel, while US West Texas Intermediate crude futures rose slightly by 5 cents to reach $73.09 a barrel by 0402 GMT.
Kelvin Wong, the senior market analyst for Asia Pacific at OANDA, attributed some market support to comments made by Saudi Arabia's energy minister suggesting the potential continuation of OPEC+ production cuts beyond the initial quarter of 2024 if deemed necessary.
Oil prices had declined in the previous trading session as traders doubted that supply cuts by OPEC+ would have a significant impact, and as a stronger US dollar weighed on commodity prices in general, said CMC Markets analyst Tina Teng.
A stronger dollar typically makes oil more expensive for holders of other currencies, which could dampen oil demand.
The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, together known as OPEC+, on Thursday agreed to voluntary output cuts totalling about 2.2 million barrels per day (bpd) for the first quarter of 2024, led by Saudi Arabia rolling over its current voluntary cut.
At least 1.3 million bpd of those cuts, however, were an extension of voluntary curbs that Saudi Arabia and Russia already had in place.
Resumption of fighting in the Israel-Hamas war, however, stoked supply concern, as did attacks on three commercial vessels in international waters in the southern Red Sea.
Those incidents followed a series of attacks in Middle-Eastern waters since war broke out between Israel and Palestinian militant group Hamas on Oct. 7.
(Reuters)
