By Arathy Somasekhar and Sudarshan Varadhan<\/p>\n\n\n\n
(Reuters) – 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.<\/p>\n\n\n\n
Brent crude futures for October rose 10 cents, or 0.1%, to $85.24 a barrel by 0330 GMT, while U.S. West Texas Intermediate crude for September rose 17 cents, or 0.2%, to $81.72.<\/p>\n\n\n\n
Both benchmarks were on track for a sixth week of gains,their longest streak of weekly gains this year. Brent has risen 15.4% and WTI 18.2% during the last six weeks.<\/p>\n\n\n\n
Saudi Arabia extended a voluntary oil production cut of 1 million barrels per day (bpd) till end-September. Russia will also slash its oil exports by 300,000 bpd in September, its Deputy Prime Minister Alexander Novak has said.<\/p>\n\n\n\n
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 cuts by Saudi Arabia and comments by Russia ahead of a crucial OPEC+ meeting have raised supply concerns, supporting prices.<\/p>\n\n\n\n
White House national security spokesman John Kirby (NYSE:KEX) said the United States will continue to work with producers and consumers to ensure the energy market promotes growth. The U.S. is the world’s biggest oil producer and consumer.<\/p>\n\n\n\n
However, the latest batch of U.S. data showing tight labor markets and a slowing service sector has triggered some worries that an economic slowdown would curb demand for oil and pressure prices lower, even with the supply cuts.<\/p>\n\n\n\n
“A strong dollar has weighed on crude prices and everyone wants to know if a hot labor market will force the Fed to tighten policy even further,” said Edward Moya, an analyst at OANDA.<\/p>\n\n\n\n
Additionally, the downturn in euro zone business activity worsened more than initially thought in July and the Bank of England raised its interest rate to a 15-year peak on Thursday. Higher borrowing costs for businesses and consumers could slow economic growth and reduce oil demand.<\/p>\n\n\n\n
However, an improved demand outlook and a tight supply could continue to buoy the oil markets, said Tina Teng, an analyst at CMC markets.<\/p>\n\n\n\n
“The upcoming US non-farm payroll (data) will be in focus, and steer market sentiment tonight,” Teng said.<\/p>\n