Oil is watching contradicting OPEC, Russian messages

Oil prices ticked up on Friday by 1%, as the market weighed conflicting messages from Russia and Saudi Arabia ahead of the next OPEC+ policy meeting. Brent crude was last up 53 cents at $76.79 a barrel, while US WTI rose 63 cents to $72.46 a barrel.

Russian President Vladimir Putin said that energy prices were approaching “economically justified” levels, while Saudi Arabian Energy Minister Prince Abdulaziz bin Salman warned short sellers to “watch out”.

Worries of weaker-than-expected demand growth globally capped gains ahead of an expected rise in oil demand in the second half of the year. The dollar has strengthened this month against a basket of major peers, making dollar-denominated commodities such as oil more expensive for those holding other currencies.

The US crude rose 89 cents, or 1.2%, to $72.74 a barrel on Thursday. Benchmarks had settled more than $2 per barrel lower on Thursday after Russian Deputy Prime Minister Alexander Novak played down the prospect of further OPEC+ production cuts at its meeting in Vienna on June 4.

Wall Street’s main indexes also rose over progress in negotiations on raising the US debt ceiling. Russia is leaning towards leaving oil production volumes unchanged ahead of an OPEC+ policy meeting on June 4, as Moscow is content with current prices and output.