World oil prices rise on Putin remarks

As oil is denominated in dollars, a stronger greenback lowers buying power for foreign traders.

Iran has pledged to increase its production to pre-sanctions levels of 4 million barrels per day.

Oil prices rose Friday as the dollar weakened following an August jobs report that showed more muted hiring growth than many anticipated.

Tehran supports any decision for restoring balance on the oil market, however it can cooperate in this regards once it regains its pre-sanction quota, Amir Hossein Zamaninia, Iran’s deputy oil minister said, SHANA news agency reported September 3.

Brent and West Texas Intermediate crude futures are on track for their biggest weekly losses since mid-January, hit by oil inventory builds and weak USA manufacturing data. WTI posted a 6.7 percent decline this week.

North Sea Brent, also for October delivery, gained $1.38, settling at $46.83 per barrel on the Intercontinental Exchange in London.

Putin further said, “I would very much like to hope that all the participants in this market, who want to maintain stable and fair world prices for energy resources, will at the end of the day take the necessary decision”. He said, “From the viewpoint of economic sense and logic, then it would be correct to find some sort of compromise”.

However, a flicker of optimism arose after Saudi’s foreign minister Adel al-Jubeir on Thursday said he sees OPEC and non-OPEC producers moving towards the same direction. “If Prince Salman and I talk on this subject, I will of course lay out our position again: we believe that it (an output freeze) is the right decision for global energy”. “That can really drive the market anywhere based on the rhetoric coming out of these countries”, Michael Tran, a commodities strategist at RBC Capital Markets in NY, said by telephone.

USA employment growth eased more than expected last month after two straight months of robust gains and wage gains moderated, casting doubts the Federal Reserve Open Market Committee will raise interest rates at its September 20-21 meeting. The median forecast in a Bloomberg survey called for 180,000.

Wall Street was higher on Friday after data showed US employment growth in August was slower than expected, which could rule out an interest rate increase this month.

Oil prices rose about 2.3 per cent after the jobs report weighed on the dollar. Meanwhile, Iran’s Mehr news agency reported that Oil Minister Bijan Namdar Zanganeh will meet OPEC Secretary-General Mohammed Barkindo this week to discuss implementation of a potential supply-side agreement, suggesting Mr Putin’s proposed framework may be gaining traction.