NEW YORK: Oil prices rose on Thursday for a second day, briefly touching $90 per barrel as leading OPEC+ members were discussing an output cut next week, but gains moderated on a stronger dollar and weak economic outlook.
Brent crude futures for November rose 18 cents to $89.50 a barrel by 11:13 a.m. EST (1513 GMT), after briefly rising above $90 a barrel. U.S. crude futures for November rose 31 cents to $82.47.
Leading members of the Organization of the Petroleum Exporting Countries and their allies known as OPEC+ have begun discussions about an oil output cut when they meet on Oct. 5, two sources from the producer group told Reuters.
One OPEC source said a cut looks likely, but gave no indication of volumes.
Reuters reported this week that Russia is likely to propose that OPEC+ reduce oil output by about 1 million barrels per day (bpd).
About 157,706 bpd of oil production was shut in the Gulf of Mexico as of Wednesday following Hurricane Ian, according to federal data. Production is expected to return in coming days.
“What is limiting the downside a bit is the inventory draws in the U.S. released yesterday and oil product inventories declines in Singapore and Northern Europe today,” said Giovanni Staunovo, analyst at Swiss bank UBS.
Both crude benchmarks rebounded from nine-month lows early this week, buoyed by a temporary dive in the dollar index and a larger than expected U.S. fuel inventory drawdown.
The dollar index rose again on Thursday, dampening investor risk appetite and stoking recession fears.
“For now, fundamentals are taking a back seat, and broader market sentiment is driving prices lower,” said Matt Smith, lead oil analyst for the Americas at Kpler.
In China, the world’s biggest crude oil importer, travel during the forthcoming week-long national holiday is set to hit its lowest level in years as Beijing’s zero-COVID rules keep people at home while economic woes curb spending.