Oil set for weekly gain as Saudi warning lingers over market
BNN Bloomberg
Oil is on track for a weekly gain with Saudi Arabia’s warning that supply cuts may be warranted providing support against other more bearish indicators.
West Texas Intermediate fluctuated near US$92 a barrel. Federal Reserve Chair Jerome Powell signaled the US central bank is likely to keep raising interest rates to stamp out inflation, which is seen as potentially hurting oil demand. Still, prices are on track for a weekly gain following an earlier rally sparked by Saudi comments flagging potential cuts to OPEC+ output to stabilize a volatile market.
“Powell reminded Wall Street that restrictive policy is required but we are not there yet, so recession fears and a deteriorating crude demand outlook is not warranted yet,” said Ed Moya, senior market analyst at Oanda.
