RIYADH: Oil prices ended higher on Friday, boosted by signals from Saudi Arabia that OPEC could cut output, but trading was volatile as investors digested and ultimately shrugged off warnings from the head of the US Federal Reserve about economic pain ahead.
Brent crude futures rose $1.65 to settle at $100.99 a barrel.
US West Texas Intermediate crude futures rose 54 cents to settle at $93.06 a barrel. Both contracts rose and fell by $1 throughout the session.
Overall, Brent gained 4.4 percent for the week, while WTI was set to rise 2.5 percent.
US says had constructive talks with India on Russian oil price cap plan
The US had constructive talks with Indian officials on a proposal to cap prices of Russian oil, US Deputy Treasury Secretary Wally Adeyemo said on Friday, as it seeks global support for a proposal to cut Russian revenue.
“I had a very constructive conversation with my Indian counterparts about the price cap proposal, but also talked extensively with private sector participants in India as well,” Adeyemo told reporters in New Delhi on Friday.
The Group of Seven richest economies aims to have a price-capping mechanism on Russian oil exports in place by Dec. 5, when EU sanctions banning seaborne imports of Russian crude come into force.
The proposal to cap the prices of Russian oil is aimed at curbing the oil revenue that Moscow uses to finance its invasion of Ukraine, while ensuring sufficient global supply at affordable prices, Adeyemo said.
“We are very concerned that come December 5 ... we will be in a place where access to Russian crude will diminish for the world and would potentially lead to higher prices,” he said.
When asked if the US was concerned by Indian companies’ usage of currencies other than the dollar to settle trades with Russia, Adeyemo said the US was “indifferent” to the currency used to pay for energy.
Indian companies are using non-dollar currencies more often to pay for Russian coal and oil imports, with the yuan, the dirham, euros and the Hong Kong dollar accounting for at least 44 percent of all coal imports in June.
Kurdish government says oil trade unaffected by dispute with Baghdad
The government of Iraq’s semi-autonomous Kurdistan region said on Friday its oil production and trade remain unaffected by recent attempts by Baghdad to control its oil revenue.
“Oil... in the Kurdistan region continues to be produced, to be shipped, to be sold, to be refined, and to be consumed. Investment interest remains and production is expected to increase,” the Kurdistan Regional Government said in a statement on Friday.
The Kurdistan region produces around 450,000 barrels per day of crude, most of which it exports.
(With input from Reuters)
