Oil prices edged up on Friday as investors waited to hear more news about a potential nuclear deal with Iran as well as the possibility of production cuts out of Saudi Arabia.
Price action
- West Texas Intermediate crude CLV22, -0.12% for October delivery climbed 82 cents, or 0.9%, to $93.32 per barrel
- The front-month October Brent crude oil contract BRNV22, +0.21% gained 91 cents, or 0.9%, to $99.36 per barrel.
- September gasoline RBU22, +0.18% gained 1 cent, or 0.4%, to $2.66 per gallon while September heating oil HOU22, +1.26% gained 3 cents, or 0.9%, to $3.92 per gallon.
- Natural gas for September delivery NGU22, +1.49% gained 12 cents, or 1.3%, to $9.47 per million British thermal units.
What analysts are saying
Oil prices have risen this week as hopes for a nuclear deal with Iran were offset by comments about potential production cuts out of Saudi Arabia.
The comments from Saudi Arabia’s energy minister suggest international oil benchmarks won’t be allowed to trade below $90 per barrel without at least some verbal intervention from the Organization of Petroleum Exporting Countries and its allies, according to analysts at Commerzbank,
“Admittedly, sources close to OPEC stressed shortly afterwards that a production cut would probably only happen if Iran were to return to the oil market as a result of a new nuclear agreement. Nonetheless, the impression remains that Saudi Arabia is not willing to tolerate any price slide below $90,” Commerzbank team wrote.
Hear from top Wall Street energy analysts at the Best New Ideas in Money Festival on Sept. 21 and Sept. 22 in New York. RBC’s Helima Croft will be there.
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