Oil prices steady as all eyes turn to OPEC meeting

Oil markets remained steady while the market awaited cues from OPEC+ close to the organization’s next meeting. Gold rose as weak economic data from the U.S. boosted its appeal.

Shreyansi Singh

Updated Jul 29, 2022, 19:30 IST

Photo : AP

KEY HIGHLIGHTS

Oil market awaits OPEC+ meeting
U.S. contracts in the second quarter

Mumbai: Oil prices remained steady on Friday, helped by supply concerns as the spotlight turned to the next OPEC meeting, while worries about an economic recession put a lid on gains.

Prices are also on track for a rise on a weekly basis.

The next meeting of the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, together called OPEC+ is now on investors’ radar.

OPEC+ reached the end of its plan to gradually unwind its production cuts that were imposed after the coronavirus pandemic slammed demand, underlining the importance of the organization's Aug. 3 meeting.

The meeting comes at the heels of the unwinding of the record 9.7 million barrels per day (bpd) supply cut they agreed to in April 2020.

OPEC+ sources stated that the group will consider keeping oil production unchanged for September, but two sources from the organization also told Reuters a modest increase could be on the table.

Gold rises on weak U.S. economic data

Gold prices edged up as a contraction in the U.S. economy bolstered its safe-haven appeal adding to the support bullion got from the Federal Reserve chairman’s aggressive tone at the July meeting.

The U.S. economy unexpectedly contracted in the second quarter, while consumer spending grew at its slowest pace in two years and business spending declined. This added to investors’ worries about a potential economic recession in the country.

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