NEW YORK (UrduPoint News/Sputnik – Aug 20, 2022) Oil prices rose on Friday but still ended the week lower after giving back much of the day’s gains as the dollar hit a high of five weeks, weighing on commodities priced in US currency which included crude.

West Texas Intermediate (WTI), the benchmark for U.S. crude, climbed as high as $92 a barrel on Friday before giving up most of it to settle at $90.88, up 27 cents, or 0 .3% over the day. The session high for WTI was $92.08. For the week, the benchmark US crude ended down 1.3%.

Brent, the London-traded global benchmark for crude, gained 13 cents, or 0.1%, to $96.72. Brent’s session high was $97.84. For the week, Brent finished down 1.5%.

The dollar index, measured against six major currencies, hit a five-week high of 108.14. The US currency rallied on speculation that the Federal Reserve would not ease outsized interest rate hikes until it got a better grip on inflation. Such a notion has gained traction since Wednesday’s release of the Fed’s July meeting minutes, which gave no clear indication of what the next US rate hike would be for Sept. 21.

“You know that when the oil market starts talking about the benefits of Fed moves versus OPEC or EIA data maneuvers, it’s time to ask how fundamentals are holding the market up,” said John Kilduff, partner at New York Energy. hedge fund Again Capital, said.

“For what it’s worth, $90 WTI acts like the new $100.”

In Thursday’s session, WTI and Brent rose nearly 4% after OPEC Secretary General Haitham Al Ghais hinted at a cartel production cut in September ahead of that the 2015 Iran nuclear deal could be revived in a few weeks.

Earlier in the week, WTI fell to $85.73, its lowest since Jan. 26, while Brent fell to $91.72, its lowest since Feb. 16, on speculation of a new impetus for the Iran nuclear deal, which could bring in another million. barrels per day or more in the market. Oil has also been weighed down since last week by data showing oil refining volumes by China’s top importer hit pandemic-era lows.

However, Al Ghais’ suspicion of OPEC production again boosted risk-taking in oil.

With 13 original members led by Saudi Arabia – before its alliance with Russia and nine other oil producers – the broader OPEC+ group has increased output in the year since it cut them from May 2020 following the coronavirus outbreak which decimated oil demand.

While this year’s production increases were initially isolated by the Ukraine conflict which propelled crude to 14-year highs between $130 and $140 a barrel in early March, OPEC+ has become more vulnerable lately as a market slowdown since May has pushed prices down persistently.