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Oil futures moved higher early Monday, building on the previous week’s gains as investors weighed the prospect of a cut in production by the Organization of the Petroleum Exporting Countries.
Price action
-
West Texas Intermediate crude for October delivery
CL00,
+0.56% CLV22,
+0.56%
rose 69 cents, or 0.7%, to $93.75 a barrel on the New York Mercantile Exchange, building on a gain of 2.9% last week. -
October Brent crude
BRNV22,
+0.35% ,
the global benchmark, was up 40 cents, or 0.4%, at $101.39 a barrel on ICE Futures Europe. The most actively traded November contract
BRNX22,
+0.58%
rose 55 cents, or 0.6%, to $93.61 a barrel. -
September gasoline
RBU22,
-1.95%
was down 1.6% at $2.805 a gallon, while September heating oil
HOU22,
-1.42%
shed 1.6% to $3.945 a gallon. -
September natural-gas futures
NGU22,
+1.53%
advanced 1.6% to $9.445 per million British thermal units.
Market drivers
Oil prices bounced last week after Saudi Arabia’s energy minister signaled that OPEC could weigh output cuts. Oil prices surged earlier this year, briefly topping $130 a barrel in intraday action in March following Russia’s invasion of Ukraine. But since then, it has retreated sharply on concerns over the global economic outlook.
Read: This asset class is poised to rise 38% because markets overestimate risk of global recession, Goldman says
Energy trading is likely to remain volatile “as markets chop between worrying about the impact of recessionary forces on demand, and on the other hand ongoing supply constraints and latterly the threat of an OPEC output cut,” said Marc Ostwald, chief economist and global strategist at ADM Investor Services International, in emailed comments.
Meanwhile, stock-index futures pointed to a lower start for equities after remarks by Federal Reserve Chairman Jerome Powell on Friday indicated the central bank will continue to tighten policy and keep rates high in its effort to wring inflation out of the economy.
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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