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Why Is Crude Oil Positive in the Early Hours on September 7?

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Dec. 4 2020, Updated 10:53 a.m. ET

Crude oil is stable in the early morning

Crude oil has been volatile since the beginning of the week amid comments from major oil exporting nations and speculations about output freeze talks. Crude oil prices are stable in the early hours on September 7 amid comments from Iran’s oil minister. At 6:00 AM EST on September 7, the West Texas Intermediate crude oil futures contract for October delivery was trading at $45.24 per barrel—a gain of ~0.94%. The Brent crude futures contract for November delivery was trading at $47.71 per barrel—a gain of ~0.95%.

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Comments by Iran’s oil minister support the prices

Bijan Zanganeh, Iran’s oil minister, commented on September 6 in a meeting with Mohammed Barkindo, the secretary general of OPEC, that he would support measures to stabilize oil prices at $50 to $60 per barrel. Crude oil started this week on a positive note amid the agreement between the world’s top exporters—Saudi Arabia and Russia—to stabilize falling crude oil prices. However, the momentum was short-lived due to a lack of information regarding output freeze talks. Read Why Did Crude Oil Lose Momentum On Tuesday, September 6? to learn more about why crude oil lost momentum.

Prices regained strength in the early hours on September 7 amid comments from Iran’s oil minister. The market is waiting for crude oil inventory data by the American Petroleum Institute and the U.S. Energy Information Administration. The data are scheduled to release on September 7 and 8.

On September 6, major crude oil producers Carrizo Oil & Gas (CRZO), Canadian Natural Resources (CNQ), Total S.A. (TOT), and British Petroleum (BP) gained 0.61%, 1%, 1.4%, and 0.55%, respectively. The SPDR S&P Oil & Gas Exploration and Production ETF (XOP) and the PowerShares DB Oil ETF (DBO) gained 1.3% and 1.6%.

In the next part, we’ll discuss how copper, gold, and silver performed in the early hours on September 7.

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