(Reuters) -Oil prices rose 2% on Friday after the International Energy Agency (IEA) said oil markets were tight, but crude benchmarks were still headed for weekly losses on jitters about looming U.S. interest rate hikes and concern that U.S.-Iran talks which could boost global supplies. Saudi Arabia and the United Arab Emirates could help to calm volatile oil markets if they pumped more crude, the IEA said, adding that the OPEC+ alliance produced 900,000 barrels per day (bpd) below target in January. The two OPEC+ producers have the most spare production capacity and could help to relieve dwindling global oil inventories that have been among factors pushing prices towards $100 a barrel, deepening inflation worldwide.
(Reuters) -Oil prices rose 2% on Friday after the International Energy Agency (IEA) said oil markets were tight, but crude benchmarks were still headed for weekly losses on jitters about looming U.S. interest rate hikes and concern that U.S.-Iran talks which could boost global supplies. Saudi Arabia and the United Arab Emirates could help to calm volatile oil markets if they pumped more crude, the IEA said, adding that the OPEC+ alliance produced 900,000 barrels per day (bpd) below target in January. The two OPEC+ producers have the most spare production capacity and could help to relieve dwindling global oil inventories that have been among factors pushing prices towards $100 a barrel, deepening inflation worldwide.
Oil s rally may extend further in the next few months due to recovering demand and limited capacity in OPEC+ to add supply and prices could break $100 a barrel, OPEC officials have told Reuters.
Oil rose to nearly $82 a barrel on Tuesday, supported by tight supply and hopes that rising coronavirus cases and the spread of the Omicron variant will not derail a global demand recovery. A lack of capacity in some countries has meant that supply additions by the Organization of the Petroleum Exporting Countries (OPEC) are running below the allowed increase under a pact with its allies. "Omicron has yet to wreak the havoc of the Delta variant and may never do so, keeping the global recovery on track," said Jeffrey Halley, analyst at brokerage OANDA.
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