# Oil rises on Saudi oil production expectations Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-07-15 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Oil prices rise amid supply concerns and dovish Fed outlook Meta Description: Oil prices climb as US official says no quick increase in Saudi oil output expected, with support from potential less aggressive interest rate hikes by US URL: https://financedigest.com/oil-rises-on-saudi-oil-production-expectationshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-07-15t003535z1lynxmpei6e00rrtroptp4global-oil-reserves-japan-1736815581960-compressed.jpg) By Rowena Edwards LONDON (Reuters) -Oil prices rose on Friday after a U.S. official told Reuters an immediate Saudi [oil output](https://www.financedigest.com/uk-oil-gas-firms-to-leave-years-worth-of-output-in-ground-with-tax-hikes-report.html "UK oil, gas firms to leave year’s worth of output in ground with tax hikes-report") boost is not expected, with further support from indications that the U.S. central [bank could raise interest rates](https://www.financedigest.com/bank-of-england-raises-rates-to-3-5-says-inflation-has-peaked.html "Bank of England raises rates to 3.5%, says inflation has peaked") less aggressively than anticipated. Brent crude [futures for September delivery](https://www.financedigest.com/intelligent-delivery-the-future-of-ecommerce-and-retail.html "Intelligent delivery: the future of eCommerce and retail") rose 76 cents, or 0.77%, to $99.86 a barrel by 0929 GMT while WTI crude rose 28 cents, or 0.29%, to $96.06. The U.S. Federal Resreve’s most hawkish policymakers on Thursday said they favoured a rate increase of 75 basis points at its policy meeting this month, not the bigger increase [traders had priced in after a report](https://www.financedigest.com/euronext-delays-commitment-of-traders-report-until-further-notice.html "Euronext delays commitment of traders report until further notice") on Wednesday showed inflation was accelerating. The interest rate uncertainty and weak [economic data](https://www.financedigest.com/oil-slumps-on-economic-data-stronger-u-s-dollar.html "Oil slumps on economic data, stronger U.S. dollar") led to Brent and WTI shedding more than $5 on Thursday to less than the closing price on Feb. 23, the day before [Russia invaded Ukraine](https://www.financedigest.com/dollar-surges-as-russia-invades-ukraine.html "Dollar surges as Russia invades Ukraine"), though both contracts clawed back nearly all the losses by the end of the session. The U.S. official’s [comment on Saudi oil](https://www.financedigest.com/oil-dips-after-fed-comments-us-crude-stock-build.html "Oil dips after Fed comments, US crude stock build") production comes at a time when capacity at members of the Organization of the Petroleum Exporting Countries (OPEC) is running low, with most producers pumping at maximum capacity. U.S. President Joe Biden, meanwhile, is visiting Saudi Arabia to attend a [summit of Gulf allies and is expected to call](https://www.financedigest.com/eu-lawmakers-call-for-summit-to-control-very-powerful-ai.html "EU lawmakers call for summit to control ‘very powerful’ AI") for the region to pump more oil. “\[Biden’s\] case will have been weakened significantly by the latest [price rout,” said Stephen Brennock of oil](https://www.financedigest.com/oil-prices-steady-as-news-of-saudi-russia-meeting-calms-investors.html "Oil prices steady as news of Saudi, Russia meeting calms investors") broker PVM. Analysts, meanwhile, expect to continued pressure on [oil from concerns](https://www.financedigest.com/oil-near-flat-as-us-crude-stock-draw-contends-with-economic-concerns.html "Oil near flat as US crude stock draw contends with economic concerns") over the global economy. “Brent has dipped noticeably below $100 per barrel this week. It is likely to continue sliding given that the [recession fears](https://www.financedigest.com/oil-settles-below-90-as-recession-fears-mount.html "Oil settles below as recession fears mount") will presumably not abate for the time being,” Commerzbank said in a note. Bearish [market sentiment has also followed renewed COVID-19 outbreaks](https://www.financedigest.com/impact-of-covid-19-outbreak-on-autonomous-car-market.html "Impact Of Covid-19 Outbreak On Autonomous Car Market") in China, which have hampered a demand recovery. China’s refinery throughput in June shrank nearly 10% from a year earlier, with [output for the first half of the year down 6% in the first annual decline](https://www.financedigest.com/around-40-of-german-companies-expect-output-decline-in-2023-iw-institute.html "Around 40% of German companies expect output decline in 2023 – IW institute") for the period since at least 2011, data showed on Friday. (Additional reporting by Jeslyn Lerh in Singapore and Laura Sanicola in New YorkEditing by David Goodman) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---