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By Sonali Paul and Jeslyn Lerh
SINGAPORE (Reuters) – Oil costs remained solid higher in Asian industry on Friday, buoyed by considerations from sources as attention turns to the upcoming meeting between OPEC and its allies, recession fears have limited gains.
U. S. West Texas Intermediate (WTI) crude futuresU. S. prices for September delivery rose 38 cents, or 0. 4 percent, to $96. 80 a barrel at 03:30 GMT, reversing losses from the previous consultation and on track to just 3% for the week.
Brent futures for the September deal, which expires on Friday, were flat at $107. 14 a barrel. October’s most active contract rose 8 cents, or 0. 1%, to $101. 91.
“It looks like we’re back in committed mode, where sentiment shifts between the dangers of recession in the second half and a fundamentally underfunded market,” said Stephen Innes, managing partner at SPI Asset Management.
A key will be the next assembly of the Organization of the Petroleum Exporting Countries (OPEC) and its Russian-led allies, jointly called OPEC, on August 3.
Producers have now reversed the record-breaking source relief of 9. 7 million barrels per day (bpd) they agreed to in April 2020, when the COVID-19 pandemic expected it to plummet.
“Oil costs (will show) significant losses due to the weakness of the U. S. dollar and the source crisis,” said Tina Teng, an analyst at CMC Markets.
OPEC resources said the organization would keep oil production unchanged by September, but two OPEC resources also told Reuters a modest buildup would be discussed.
A resolution to increase production would disappoint the U. S. The U. S. government after U. S. President Joe Biden visited Saudi Arabia this month in hopes of reaching a deal on oil production.
A senior U. S. management official The U. S. government said Thursday that the government was confident of the OPEC meeting and said another source would help stabilize the market.
Analysts, however, said it would be difficult for OPEC to accumulate sources particularly given that many manufacturers are struggling to meet their production quotas due to a lack of investment in oil fields.
“OPEC production is limited, materials are stabilizing in Libya and Ecuador. Insufficient investment in many member countries will keep production limited,” analysts at ANZ Research said.
(Reporting through Sonali Paul in Melbourne and Jeslyn Lerh in Singapore; Editing through Kenneth Maxwell and Kim Coghill)