Oil prices jumped on the international market

(Patria) - Oil prices jumped one percent on international markets, ahead of the speech by the head of the US central bank Fed, Jerome Powell, who could give investors indications about the future direction of interest rates.

The price of a barrel rose on the London market compared to the previous close by 93 cents, to 84.29 dollars. On the American market, a barrel was sold at a price about 87 cents higher, at 79.92 dollars.

Investor caution ahead of Powell's speech at the Jackson Hole symposium pushed the dollar to its highest level in ten weeks, as markets await indications of how long interest rates will remain elevated.

A strong dollar makes oil more expensive for holders of other currencies and reduces demand, Hina reports.

Meanwhile, a reduction in oil supply on the global market has become increasingly evident recently, Morgan Stanley analysts wrote in a note.

The bank expects crude oil supply to fall during the rest of the year, but for 2024, it also predicts slower demand, which will result in oversupply at the beginning of next year.

Talks between Turkey and the Iraqi Kurdistan regional government on crude oil exports from northern Iraq are expected to continue after officials failed to reach an agreement on resuming exports this week.

On March 25, Turkey halted the flow of Iraqi oil through the port of Ceyhan, after losing a long-standing arbitration case initiated by Iraq.

State media, meanwhile, quoted the Iranian oil minister who expects the country's crude oil production to reach 3.4 million barrels per day by the end of September, although US sanctions remain in place.

Additionally, US officials are drafting a proposal that would ease sanctions on Venezuela's oil sector, paving the way for more companies and countries to import its oil.

The Organization of the Petroleum Exporting Countries (OPEC) separately announced that yesterday, a barrel of its member countries' oil basket slightly decreased in price, to 85.71 dollars.