Oil set for 2nd weekly fall on firm dollar as supply worries ebb

Oil set for 2nd weekly fall on firm dollar as supply worries ebb
# 25 August 2023 09:00 (UTC +04:00)

Oil rose but headed for a second week of decline on Friday, as the dollar firmed before a speech by Federal Reserve Chair Jerome Powell while concerns over tight supply eased, APA reports citing Reuters.

Brent crude rose 30 cents, or 0.4%, to $83.66 a barrel by 0434 GMT, while U.S. West Texas Intermediate crude was up 31 cents, also 0.4%, at $79.36 a barrel.

Crude prices are set to fall between 1.5%-2.5% for the week, a second consecutive week of decline.

Investor caution ahead of Powell's remarks at the Jackson Hole Symposium lifted the safe-haven dollar to a 10-week high, its biggest rise in a month, as markets waited for word on how long rates would stay elevated.

A strong dollar makes oil more expensive for holders of other currencies, denting demand.

The market is closely monitoring the flows of Iranian oil as the country's crude oil output will reach 3.4 million bpd by the end of September, Iran's oil minister was quoted as saying by state media, even though U.S. sanctions remain in place.

"The support to oil prices from previous production cuts has ebbed. The market is looking for Saudi Arabia to continue extending its voluntary output reductions," said analysts from Haitong Futures.

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