Oil prices settled higher during the Asian trading sessions as the US requested that oil producers OPEC members and Russia prevent a spike in global oil prices. The increase followed a 2.5% drop in WTI prices as well as 1.7% drop in Brent oil prices during Thursday’s US trading session, with the drop was caused by the reports of the biggest monthly jump in production in two years out of OPEC.
OPEC increased its production in August by 420 K bpd to 32.63 M according to the International Energy Agency, with the increase far outweighing losses from Iran ahead of US sanctions.
Oil prices managed to recover from the prior session’s sharp decline and remains on track to record solid weekly gains as market participants looked ahead to the latest gauge of US production. Market participants will focus on the latest release on US crude production from Baker Hughes. The US rig count which is an early indicator of future production increase by 2 to 862 last week and is seen hovering near its highest levels since March 2015.
This week price action is seen to the upside, however, market participants are little tentative buying strength or potential breakouts. Prices were seen supported early during the week on worries over the upcoming sanctions against Iran and their impact on supply
New York-traded WTI crude futures trade at $68.70 a barrel. Meanwhile, Brent crude futures, the benchmark for oil prices outside the U.S. trades at $78.10 a barrel.