Oil prices rose, but they are heading towards a second consecutive week of losses on Friday, as the dollar rose before a speech by the Chairman of the Federal Reserve. However, concerns about supply shortages receded.
At 0434 GMT, Brent crude rose 0.4% to $83.66 while US West Texas Intermediate crude increased 0.4% to $79.36.
It is expected that crude oil prices will decrease by 1.5% to 2.5% this week, marking the second consecutive week of decline.
“Expectations about the Fed’s policies will be the main driving force for the markets,” said market analyst Yip John Rong of IG.
Investors’ caution ahead of US Federal Council Chairman Jerome Powell’s speech at the Jackson Hole symposium drove up the dollar – a safe haven – to its highest level in 10 weeks. This was its largest gain in a month as markets await any indication of how long interest rates will remain high.
The increase in the value of the dollar leads to a rise in the cost of oil for those who hold other currencies. This, in turn, negatively impacts demand.