Crude oil prices remain steady

27 Sep 2022 , 07:26 AM

Tuesday’s early Asian trading saw oil hold steady as signs that the producer alliance OPEC+ was trying to prevent a price crash and a minor easing in the value of the US dollar moderated an earlier selloff.

Brent crude prices rose 26 cents, or 0.3%, to $84.32 per barrel, while West Texas Intermediate (WTI) crude futures gained 19 cents to $76.90. On Monday, both benchmarks fell by roughly $2 per barrel, mostly due to the strengthening of the US currency.

Ihsan Abdul Jabbar, the oil minister for Iraq, stated on Monday that OPEC and its ally Russia, collectively known as OPEC+, were keeping an eye on the oil price situation in order to keep markets balanced.

He stated in an interview broadcast on Iraqi state television, “We don’t want a significant spike in oil prices or a collapse.”

In part due to the soaring U.S. dollar, Abdul Jabbar’s remarks helped to bolster oil, which settled at nine-month lows.

Following unprecedented production cuts implemented in 2020 as a result of demand damage brought on by the COVID-19 pandemic, OPEC+ has increased output this year. But the company hasn’t been able to raise output as projected in recent months.

Prices were supported by a weakening of the dollar, which trades inversely with oil. The U.S. dollar, however, touched its best level on Monday since May 2002, even though it declined in post-settlement activity.

Prices were also held down by uncertainty over supply interruptions brought on by the Russia-Ukraine conflict and tightening monetary policies globally that raise the possibility of economic downturns.

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