Oil Heads For Weekly Gain With OPEC+ Supply hike at Risk

Futures in New York slipped on Friday but are up 1.2% for the week. The Organization of Petroleum Exporting Countries and its allies were locked in a tense diplomatic standoff after the group failed to reach a final agreement on Thursday. The UAE is willing to accept unchanged output if no new deal can be reached, a delegate said. That would squeeze an already tight market.

Oil jumped more than 10% last month with the summer driving season boosting demand for U.S. crude and gasoline. The OPEC+ alliance has thus far taken a more gradual approach to returning shuttered supplies and calls for more output have increased in frequency. The world’s third-biggest oil consumer, India, raised concerns about price pressures with the nation expecting fuel consumption to return to pre-virus levels by the end of this year.

Kamran Wadud | Financial Markets Trader & Mentor