26 Aug , 2022 By : Kanchan Joshi
New Delhi: Crude oil prices rose during the early trade on Friday amid persistent fears of a production cut by Organization of the Petroleum Exporting Countries (Opec) and indications of improving fuel demand.
Around 10.20 am, the October contract of Brent on the Intercontinental Exchange was trading at $100.13 a barrel, higher by 0.80% from its previous close. Similarly, the October contract of West Texas Intermediate (WTI) on the NYMEX rose 0.88% to $93.33 a barrel.
Demand hopes have gained momentum as the latest ‘TomTom Congestion Index Data’ for Asia Pacific, European and North American showed that the traffic levels in all the regions recorded strong growth in the week ended 24 August.
“NYMEX crude trades higher above $93/bbl supported by choppiness in the US dollar and gains in equity market as risk sentiment improved on China’s continuing efforts to support the economy and amid progress in US-China talks,“ Ravindra Rao, head of commodity research at Kotak Securities said:.
Crude is also supported by persisting rise in power prices in Europe which may increase fuel switching, he said.
The rise in oil prices prices comes after a slump on Thursday as investors anticipated a return of sanctioned Iranian oil exports to global markets.
“Talks between the European Union, the US and Iran to revive the 2015 nuclear deal are continuing, with Iran saying it had received a response from the US to the EU’s ‘final’ text to resurrect the agreement," said Rahul Kalantri, vice president for commodities at Mehta Equities. “We expect crude oil prices to remain volatile in today’s session.
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