With the US dollar weakening and the prospect that the OPEC + group would decide to cut crude production when it meets on October 5th, oil prices are expected to post their first weekly gain in five weeks on Friday.
By 0948 GMT, the price of November Brent crude futures increased by 95 cents, or 1.7%, to $89.44 per barrel. A barrel of December futures increased by 81 cents to $87. 99.
Additionally, the price of US West Texas Intermediate oil futures increased by 72 cents, or 0.89 percent, to $81. 95 per barrel.
After reaching their lowest levels in nine months during the past several days, Brent and West Texas Intermediate each increased by more than one percent earlier in the session. They are now on track for weekly increases of roughly four percent, their first weekly increase since August.
The dollar’s slide earlier in the week from its highest levels in 20 years aided the increase in oil prices. Oil priced in US dollars is now more affordable for holders of other currencies, increasing demand.
Analysts predict that as Russia gets ready to annex four regions of Ukraine on Friday, which might lead to Washington tightening sanctions on Moscow, the amount of sales will also rise.
The likelihood that the Organization of Petroleum Exporting Countries (OPEC) and its allies will reduce output quotas at their meeting on October 5th provided fresh support to the market.
As concerns about demand resulting from a potential global economic slowdown and higher interest rates weighed on crude oil prices, analysts anticipate supply decreases.
Prices for Brent and West Texas Intermediate are anticipated to decline significantly by 23 percent at the conclusion of the third quarter.
Oil prices are expected to rise this week.
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