Brent crude prices rise, record weekly gains of over 4%

Oil prices rose, on Aug. 26, driven by signals that OPEC may cut oil output, which led to significant weekly gains.

This also came after Fed Chairman Jerome Powell said the central bank will continue to aggressively raise interest rates to cool the economy, despite warning from the negative impacts on families, companies and economy.

The UAE is aligned with Saudi Arabia’s thinking on crude oil markets, a source with knowledge of the matter told Reuters, adding that supplies would be cut if Iranian exports return to oil markets.

US Deputy Treasury Secretary Wally Adeyemo said the US had constructive discussions with Indian officials on a proposal to cap prices of Russian oil, as it seeks global support for a proposal to cut Russian revenue.

On the other hand, Iran reviews Washington's response to the EU's final offer to revive the nuclear deal, and the EU expects a response soon, although it is unclear how quickly Iranian oil exports will resume even if an agreement is reached.

The US drilling rig count rose four units last week to 605 in the week ended Aug. 26, General Electric Co.’s Baker Hughes energy services firm said in its closely followed report on Friday.

Brent crude futures for October delivery increased 1.7%, or $1.65, to $100.99 a barrel, recording weekly gains of 4.4%.

US West Texas Intermediate (WTI) crude futures also rose 0.6%, or $0.54 a barrel, to $93.06 a barrel, with weekly gains of nearly 2.9%.