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Oil Prices Gain after IEA Says Market Tight

Oil prices rose on Friday after the International Energy Agency (IEA) said Oil markets were tight. However, we’re still heading for weekly losses on inflation worries and U.S.-Iran, which could boost global supplies. Brent crude futures rose $1.43, or 1.56%, to trade at $92.84 per barrel, while U.S. West Texas Intermediate crude advanced $1.47, or 1.6%, to $91.35 per barrel.

Prices are on track for their first weekly decline after seven consecutive weekly gains. Saudi Arabia and the United Arab Emirates could help to calm volatile Oil markets if they pumped more crude, the IEA said on Friday, adding that the OPEC+ alliance produced 900,000 barrels per day (BPD) below target in January.

The two OPEC+ producers have the sparest production capacity and could help relieve dwindling global Oil inventories that have been among factors pushing prices towards $100 a barrel, deepening inflation worldwide.

This comes after the Organization of the Petroleum Exporting Countries (OPEC) said world Oil demand might rise even more steeply this year amid a post-pandemic solid economic recovery. However, the prospect of an aggressive U.S. Federal Reserve interest rate hike and ongoing talks between the United States and Iran on the latter’s nuclear program capped further gains in prices.

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