Oil prices increase, after dropping 3% in the previous session

1 Jul 2022 , 08:26 AM

As OPEC+ announced it will stick to its planned oil output hikes in August and investors get concerned about the resilience of the global economy, oil prices began to rise in early trade on Friday after falling in the previous session.

Thursday saw a roughly 3% decline in prices.

Prior to the extended Fourth of July weekend, American traders balanced their positions.

After two days of discussions, the producers in the OPEC+ group, which includes Russia, decided to adhere to their output policy on Thursday. However, starting in September, the producer club refrained from talking about policy.

OPEC+ had previously planned to increase production each month by 648,000 barrels per day (bpd) in July and August, instead of the previously anticipated 432,000 bpd rise.

When he meets with the Saudi king and crown prince during a visit next month, U.S. President Joe Biden said on Thursday that he won’t directly demand that Saudi Arabia increase oil output to lower the country’s skyrocketing crude prices.

The Lederne trade union said on Thursday that 74 Norwegian offshore oil employees at Equinor’s Gudrun, Oseberg South, and Oseberg East platforms will begin a strike on July 5. This strike is expected to shut down around 4% of Norway’s oil production.