Oil stabilizes with tight supplies, eyes turn to OPEC+ meeting

Oil prices settled at a high level in Asian trade on Friday, July 29, supported by supply concerns and with the focus shifting to the next meeting of the OPEC + bloc, though recession fears limited the gains.

West Texas Intermediate crude futures for September delivery rose 38 cents, or 0.4%, to $96.80 a barrel, offsetting losses incurred in the previous session, and heading towards recording a weekly increase of about 3%.

Brent crude futures for September delivery, which expire on Friday, July 29, settled at $107.14 a barrel.

Brent crude futures for October delivery jumped 8 cents, or 0.1%, to $101.91 a barrel.

The next meeting of the Organization of the Petroleum Exporting Countries and its allies, or the grouping known as OPEC +, on August 3 will be an important factor in the market.

OPEC + sources said that the cartel would consider keeping the production level unchanged for the month of September, but two sources in the cartel told Reuters that a slight increase in production would be discussed.

The decision not to increase production will disappoint the United States after US President Joe Biden visits Saudi Arabia this month in the hope of reaching an agreement on oil production.

A senior official in the US administration said yesterday, Thursday, that the government is optimistic about the OPEC + meeting, adding that the increase in production may contribute to stabilizing the market.