Oil prices rose on Friday amid expectations of OPEC extending its current production limits for the next two months and because the US Federal Reserve looks as if it will halt raising interest rates, although any gains could be offset by a potential ceasefire in Gaza.
The international benchmark crude Brent traded at $79.27 per barrel at 10.28 a.m. local time (0728 GMT), a 0.72% increase from the closing price of $78.70 a barrel in the previous trading session on Thursday.
The American benchmark, West Texas Intermediate (WTI), traded at the same time at $74.30 per barrel, up 0.65% from Thursday’s close of $73.82 per barrel.
Price increases came after the OPEC group agreed to adhere to its current oil cutbacks until the end of March amid expected supply surpluses over this period.
The group said it is prepared ‘to take additional measures at any time,’ reaffirming the earlier decision to reduce production.
The US Fed’s decision to leave its interest rate policy unchanged at present, with hints that rates are ‘likely’ at their peak in the monetary tightening cycle, also contributed to price increases.
Nonetheless, the growing likelihood of a ceasefire in Gaza is restraining price increases.
According to a statement from the Qatari Foreign Ministry, Hamas has given its “initial positive confirmation” to a proposed deal that would see hostages freed and fighting in Gaza stop for a period of time.
The statement said that Israel has agreed to the proposal, confirming reports that the deal was negotiated in Paris on Sunday during meetings between Qatari, US, Israeli and Egyptian officials.
