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SINGAPORE, Aug 15 (Reuters) – Oil prices dropped for a second session on Monday after the head of the world’s top exporter, Saudi Aramco, said it is ready to ramp up output while production at several offshore US Gulf of Mexico platforms is resuming after a brief outage last week.

Brent crude futures fell 27 cents, or 0.3%, to USD 97.88 a barrel by 0034 GMT after settling 1.5% lower on Friday. US West Texas Intermediate crude was at USD 91.87 a barrel, down 22 cents, or 0.2%, following a 2.4% drop in the previous session.

Saudi Aramco stands ready to raise crude oil output to its maximum capacity of 12 million barrels per day (bpd) if requested to do so by the Saudi Arabian government, Chief Executive Amin Nasser told reporters on Sunday.

“We are confident of our ability to ramp up to 12 million bpd any time there is a need or a call from the government or from the ministry of energy to increase our production,” Nasser said. He added that China’s easing of COVID-19 restrictions and a pickup in the aviation industry could add to demand.

Investors are looking ahead to China economic data later on Monday for demand cues at the world’s top crude oil importer.

Oil prices rebounded more than 3% last week after a damaged oil pipeline component disrupted output at several offshore Gulf of Mexico platforms.

Producers had moved to reactivate some of the halted production after repairs were completed late Friday, a Louisiana official said.

Energy services firm Baker Hughes Co. (BKR) reported on Friday that US oil rig count rose by 3 to 601 last week. The rig count, an early indicator of future output, has been slow to grow with oil production only seen recovering from pandemic-related cuts next year.

Global oil markets remained supported by tight supplies in the run-up to EU sanctions on Russian crude oil and refined product supplies this winter.

(Reporting by Florence Tan; Editing by Kenneth Maxwell)

Aug 15 (Reuters) – Gold prices held steady near the key psychological level of USD 1,800 per ounce on Monday, supported by a pullback in the dollar and US Treasury yields.

FUNDAMENTALS

* Spot gold was little changed at USD 1,800.09 per ounce, as of 0033 GMT, after rising 1.6% last week.

* US gold futures were flat at USD 1,815.10.

* Benchmark US 10-year Treasury yields edged lower to 2.8421% after hitting a three-week peak on Friday, decreasing the opportunity cost of holding non-interest-bearing gold.

* The dollar slipped 0.1% against its rivals, making gold less expensive for other currency holders.

* Richmond Federal Reserve Bank President Thomas Barkin said on Friday he wants to raise interest rates further to bring inflation under control.

* Data showed US import prices fell for the first time in seven months in July, helped by a strong dollar and lower fuel and nonfuel costs, while consumers’ one-year inflation outlook ebbed in August, the latest signs that price pressures may have peaked.

* Although gold is seen as a hedge against inflation, rising US interest rates dull non-yielding bullion’s appeal.

* Asian shares inched higher with investors anxious to see if Wall Street can sustain its rally as hopes US inflation has peaked will be tested by likely hawkish commentary from the Fed this week.

* Japan’s economy expanded for the third straight quarter on solid private consumption, data for April-June showed.

* High domestic prices restrained physical gold demand in India last week, while uncertainty surrounding Taiwan-related developments prompted bullion importers in China to hold off on big purchases.

* SPDR Gold Trust GLD, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.15% to 995.97 tonnes on Friday.

* Spot silver eased 0.2% to USD 20.78 per ounce, platinum fell 0.3% to USD 959.69, and palladium was steady at USD 2,223.83.

DATA/EVENTS (GMT)

0200 China Urban Investment (YTD) YY

0200 China Retail Sales YY

0200 China Unemp Rate Urban Area

1100 EU Reserve Assets Total

(Reporting by Brijesh Patel in Bengaluru; Editing by Rashmi Aich)

Aug 12 (Reuters) – Gold prices drifted higher on Friday helped by a drop in U.S. Treasury yields and setting the metal on path for a fourth straight week of gains, as investors took stock of the recent inflation data out of the United States.

Spot gold rose 0.5% to $1,798.86 per ounce by 1800 GMT and was headed for a more than 1% weekly rise. U.S. gold futures GCv1 also settled up 0.5% at $1,815.5.

“Currently the gold market is seeing some short-covering and is supported by lower yields,” said Bart Melek, head of commodity strategy at TD Securities.

U.S. Treasury yields dipped after a volatile week as investors evaluated whether an apparent slowdown in inflation increases could reduce the speed of Federal Reserve interest rate hikes.

Data released earlier this week indicated that inflation in the U.S. has cooled down, following which market participants toned down expectations of an aggressive rate hike by the Fed.

However, recent Fed commentary continues to be hawkish and have stopped the metal from breaking above the $1,800 level.

“Gold’s rally, after cooler CPI numbers, stopped in its tracks as the market believes inflation will continue to be a problem. Fed speakers have also suggested they can’t afford to relinquish the fight against inflation,” Melek added.

Gold tends to do well in a low-interest environment as it yields no interest.

“Rising risk appetite as seen through surging stocks and bond yields … have so far prevented the yellow metal from making a decisive challenge at key resistance above $1,800,” Saxo Bank analyst Ole Hansen said. .N

Meanwhile, high domestic prices restrained physical gold demand in India this week, while uncertainty surrounding Taiwan-related developments prompted bullion importers in China to hold off on big purchases.

Spot silver rose around 2% to $20.70 per ounce, platinum was up 0.3% at $958.57, while palladium fell 1.8% to $2,235.09.

(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Shounak Dasgupta)

NEW YORK, Aug 12 (Reuters) – Oil prices plunged around 2% on Friday, on expectations that supply disruptions in the US Gulf of Mexico would be short-term, while recession fears clouded the demand outlook.

Futures, however, were still on track for a weekly gain.

Brent crude futures fell USD 1.45, or 1.5%, to settle at USD 98.15 a barrel, while US West Texas Intermediate (WTI) crudeCLc1fell USD 2.25, or 2.4%, to settle at USD 92.09 a barrel. Both contracts gained more than 2% on Thursday.

“We are pulling back a little bit after the big run up yesterday,” said Phil Flynn, an analyst at Price Futures group.

Brent gained 3.4% this week after last week’s 14% tumble on fears that rising inflation and interest rates will hit economic growth and demand for fuel. WTI rose 3.5%.

Crews were expected to replace a damaged oil pipeline piece by the end of the day on Friday, a Louisiana port official said, allowing for the resumption of production at seven offshore US Gulf of Mexico oil platforms.

On Thursday, top US Gulf of Mexico oil producer Shell (SHEL) said it halted production at three deepwater platforms in the region. The three platforms are designed to produce up to 410,000 barrels of oil per day combined.

The Amberjack pipeline, one of two stopped by the leak, has restarted at reduced capacity, Shell spokesperson Cindy Babski said. The Mars pipeline remained offline but is expected to resume operation later on Friday, she said.

The market also absorbed contrasting demand views from the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA).

“We are seeing an economic slowdown, but its unclear if it’s as big a slowdown as some of the recent outlooks have been predicting,” said Ole Hansen, head of commodity strategy at Saxo Bank. “The demand will ebb and flow, but supply is still the main concern.”

European sanctions on Russian oil are due to tighten later this year while a six-month coordinated energy release agreed by the United States and other developed economies is due to run its course by the end of the year.

On Thursday OPEC cut its forecast for growth in world oil demand in 2022 by 260,000 barrels per day (bpd). It now expects demand to rise by 3.1 million bpd this year.

The IEA, meanwhile, raised its demand growth forecast to 2.1 million bpd, citing gas-to-oil switching in power generation

The IEA also raised its outlook for Russian oil supply by 500,000 bpd for the second half of 2022 but said OPEC would struggle to boost production.

In the United States, import prices fell for the first time in seven months in July, helped by a strong dollar and lower fuel and nonfuel costs, while consumers’ one-year inflation outlook ebbed in August, the latest signs that price pressures may have peaked.

US oil rigs rose three to 601 this week, energy services firm Baker Hughes Co. (BKR) said. The rig count, an indicator of future output, has been slow to grow with oil production only seen recovering to pre-pandemic levels next year.

(Reporting by Stephanie Kelly in New York; additional reporting by Noah Browning in London, Sonali Paul in Melbourne and Jeslyn Lerh in Singapore; Editing by Marguerita Choy and David Evans)