Oil prices are on their way to a second week of losses, with the rise of the dollar
Oil prices rose, but it was heading for a second week of losses on Friday, with the dollar surging ahead of a speech by the Federal Reserve chairman as concerns about supply shortages receded.
By 0434 GMT, Brent crude was up 30 cents, or 0.4 percent, at $83.66 a barrel. US West Texas Intermediate crude also rose 31 cents, or 0.4 percent, to $79.36 a barrel.
Crude oil prices are expected to drop between 1.5 and 2.5 percent this week, the second consecutive week of decline.
“There is no doubt that expectations about the Fed’s policies will be the main driving force for the markets in the coming period,” said Yip John Rong, market analyst at IG.
The caution of investors ahead of the statements of the Chairman of the Federal Reserve (US Central Bank) Jerome Powell at the Jackson Hole symposium raised the dollar, which is considered a safe haven, to its highest level in 10 weeks, in its largest gain in a month, as the markets await any indications about how long it will remain. Interest rates are high.
The rise in dollar index futures increases the cost of oil for holders of other currencies, which negatively affects demand.
On the supply side, talks between Turkey and the semi-autonomous Kurdistan Regional Government of Iraq over crude oil exports from northern Iraq are continuing after officials failed to reach an agreement to resume oil exports earlier this week.