Oil Prices Rise After UAE Drops OPEC Exit Plan

Brent crude oil futures are currently up 72 cents, or 0.9%, to $85.47 per barrel. Meanwhile, US West Texas Intermediate (WTI) crude oil futures are up $1.04, or 1.3%, to $79.20.

 

The United Arab Emirates, which was previously considering leaving OPEC and pumping more oil, has finally decided to remain in the organization. A source with direct knowledge told Reuters that the previous reports were "far from the truth".

 

Oil prices are currently on track for a weekly increase. This is supported by Chinese economic data showing strong growth in the services and manufacturing sectors in February. This provides hope for future oil demand growth. Russian oil imports via the China Sea are also expected to hit a record high this month.

 

The world's major oil importers are increasingly ambitious by setting a growth target of 6% in 2023. This was revealed by sources quoted by Reuters.

 

Despite a 10th consecutive week of crude oil stockpiles build in the United States, the market appears to have shrugged it off. Record US crude exports have provided further support for oil prices.

 

Meanwhile, UBS analyst Giovanni Staunovo said that the market appears to have shrugged off a 10th consecutive week of crude oil stockpiles build in the United States. This is due to record US crude exports providing further support for oil prices.

 

Analysts reviewed by Reuters also expect the greenback to come under pressure in the next twelve months. This would make dollar-denominated oil cheaper for holders of other currencies.

 

On the central bank front, the European Central Bank continued to signal hawkishness with ECB Governing Council member Pierre Wunsch saying that the key interest rate could rise as high as 4% if underlying inflation remains high.