Oil prices set for sixth weekly gain as producers pledge output cuts

Oil prices rose for a second day on Friday, set for their sixth week of gains, after Saudi Arabia and Russia, the world’s second and third-largest crude producers, pledged to cut output through next month.

Brent crude futures for October rose 30 cents, or 0.4%, to $85.44 a barrel by 0042 GMT, while U.S. West Texas Intermediate crude for September rose 36 cents, or 0.4%, to $81.90.

Brent on Thursday clawed back a 2% drop in the Wednesday session, leaving futures set for a 0.4% weekly gain, while WTI was to close the week up 1.4% higher after U.S. crude inventories fell by the most ever on Wednesday.

Both benchmarks were on track for a sixth week of gains, their longest streak of weekly gains this year.

Saudi Arabia’s statement on Thursday to extend a voluntary oil production cut of 1 million barrels per day (bpd) for another month to include September came a day before ministers of the Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, known as OPEC+, are set to meet.

The Joint Ministerial Monitoring Committee of OPEC+ is unlikely to tweak overall oil output policy at the meeting on Friday, sources have said. But the Saudi Arabian pledge plus comments from Russian Deputy Prime Minister Alexander Novak that it will also cut its oil exports by 300,000 bpd in September have raised concerns about supply and supported prices.

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