Oil prices rise on OPEC+ cuts and a weaker dollar
The price of Brent North Sea crude climbed to 90.43 dollars per barrel as market participants anticipated continued voluntary output reductions by OPEC+ and noted a softer dollar against major currencies. The move makes raw material purchases more affordable for buyers globally, a trend highlighted by a BitRiver analyst.
Several factors supported the upturn. A modest uptick in U.S. payrolls for August and stronger job gains helped buoy sentiment, while the unemployment rate lingered at levels not seen since early 2022. Experts suggest this mix lowers the likelihood of an immediate Federal Reserve rate hike, a development that tends to lift oil demand expectations and push prices higher in the short term.
Positive Chinese data also played a role, with the official PMI for the manufacturing sector rising to 51 in August from 49.2 in the prior month. Such momentum signals steadier activity in a key consumer and industrial market, reinforcing the view that energy demand could stay resilient.
Analysts estimate that oil costs could breach the 100-dollar threshold for Brent by year end, or possibly earlier, if current trends persist and supply discipline remains in place.
Recent announcements indicate that Saudi Arabia extended its voluntary production cut, and Russia did as well, with terms extending into December. Prior expectations from industry observers suggested that Brent could move within an 80 to 90 dollar range in the near term. As trading progressed, Brent futures for the next month traded near 90.37 dollars per barrel as markets digested the latest supply-side signals.
Analysts noted that the overall energy complex continues to respond to a blend of supply discipline by major producers and evolving macroeconomic conditions, including currency movements and inflation expectations. Market watchers in Canada and the United States remain focused on how these developments affect energy costs, industrial input prices, and broader economic activity. (Source: BitRiver analyst remarks as reported by socialbites.ca)
What to watch next: government and industry updates on production quotas, currency valuations, and global demand indicators will continue to shape Brent pricing through the autumn season.