Oil prices ticked up on May 26 as the market weighed conflicting messages on supply from Russia and Saudi Arabia ahead of the next OPEC+ policy meeting.
Brent crude was up 77 cents, or 1%, at $77.03 a barrel at 1342 GMT, while U.S. West Texas Intermediate rose 96 cents, or 1.3%, to $72.79 a barrel.
Benchmarks had settled more than $2 per barrel lower on May 25 after Russian Deputy Prime Minister Alexander Novak played down the prospect of further OPEC+ production cuts at its meeting in Vienna on June 4.
Both prices were still poised to post a second week of gains. A deal to raise the U.S. debt ceiling, which appears in sight, would likely boost oil prices.
Russian President Vladimir Putin said on May 24 that energy prices were approaching "economically justified" levels, also indicating there could be no immediate change to OPEC+'s production policy.
The Russian remarks contrasted with comments this week from Saudi Arabian Energy Minister Prince Abdulaziz bin Salman, the de-facto leader of the Organization of Petroleum Exporting Countries (OPEC), warning short sellers to "watch out".
Some investors interpreted that as a signal OPEC+ could consider further output cuts.
Worries of weaker-than-expected demand growth globally capped gains ahead of an expected rise in oil demand in the second half of the year, especially from China.
Meanwhile, bets on falling oil prices are on the rise.
The dollar has strengthened this month against a basket of major peers, making dollar-denominated commodities such as oil more expensive for those holding other currencies.
Recommended Reading
US Drillers Cut Oil, Gas Rigs for Third Week in a Row, Baker Hughes Says
2024-08-30 - The rig count is 8% below this time last year, according to Baker Hughes.
Helix Awarded Vessel Service, Charter Contracts Off Brazil
2024-08-28 - Helix Energy Solutions Group was awarded new three-year charter and service contracts, valued at an estimated $786 million, from Petrobras for Siem Helix 1 and Siem Helix 2.
Shell, Akselos Enter Enterprise Deal for Structural Performance Management
2024-08-28 - Shell Information Technology International will leverage Akselos’ structural performance management software to monitor the health and lifecycle of Shell’s critical assets in Qatar, Canada, the Gulf of Mexico and elsewhere.
From Exxon to APA, E&Ps Feel Need to Scratch Exploration Itch
2024-08-27 - Exxon Mobil is looking for its “next Permian,” which an executive said could be in Algeria.
E&P Highlights: Aug. 26, 2024
2024-08-26 - Here’s a roundup of the latest E&P headlines, with Ovintiv considering selling its Uinta assets and drilling operations beginning at the Anchois project offshore Morocco.