Oil prices jumped to the highest level in 5 weeks after the decision of the OPEC Plus group to cut production, and US stocks closed sharply lower, while gold fell slightly during the weekend's trading.

Oil prices increased by about 4% yesterday, Friday, recording the highest level in 5 weeks, supported by the decision of OPEC Plus to make the largest supply cut since 2020, despite concerns about recession and high interest rates.

Oil rose for the fifth day in a row, despite the dollar's rise after data showed that the US economy was leaving jobs at a strong pace, while reinforcing expectations that the Federal Reserve (the US central bank) would continue to tighten monetary policy sharply.

A stronger dollar makes oil more expensive for holders of other currencies, and usually affects oil and other risky assets.

Brent crude futures rose 3.7% to $97.92 a barrel.

US West Texas Intermediate crude also rose 4.7% to $ 92.64.

This was the highest closing level for Brent since August 30, and for US crude since August 29.

The two contracts recorded gains for the second week in a row, and the largest percentage gain since March this week.

During the week, Brent crude rose by about 11% and US crude by 17%.

"One of the major implications of the recent OPEC cuts is the likely return to the $100 price," said Stephen Brennock of oil brokerage PVM.

A cut decided by the OPEC Plus bloc - which includes the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia - comes before the European Union's ban on Russian oil, reducing supplies in a market that is already suffering from a tight supply.

On Thursday, US President Joe Biden expressed his disappointment with the plans of OPEC Plus, and other officials said that the United States is studying all possible alternatives to prevent a rise in prices.


Wall Street closed sharply lower

Wall Street's major indices closed sharply lower on Friday, after strong September employment data raised the likelihood that the US Federal Reserve would go ahead with its rate hike campaign.

The Labor Department reported that the unemployment rate fell to 3.5%, compared to experts' expectations of 3.7%, in an economy that continues to show strength despite the US Federal Reserve's efforts to reduce high inflation by weakening growth.

With the two-day high, earlier in the week, Friday's decline pushed the Standard & Poor's 500 index to decline for the fourth consecutive week, while the Dow Jones and Nasdaq indexes recorded a decline for the seventh consecutive week.

The Standard & Poor's 500 Index fell 2.8%, the Nasdaq lost 3.8%, while the Dow Jones Industrial Average fell 2.1%.

All 11 major sectors on the S&P 500 lost ground, led by the technology sector.

gold goes down

In the metals markets, spot gold prices fell 1% to $1694.8 an ounce at the close yesterday.

US gold futures fell 0.7% to $1,709.3 an ounce.

"The market is looking at the above-expected jobs report as an additional impetus for the Federal Reserve to raise interest rates by another 75 basis points at its early November meeting," said Tae Wong, chief dealer at Heraeus Precious Metals in New York.

He added, "If gold does not consolidate at the level of 1690 dollars, it may fall to the level of 1660 dollars. The market will now focus on the main inflation data that will be issued next week, in addition to the minutes of the Federal Reserve meeting."

The data showed that employers in the United States hired more workers than expected last September.

The dollar rose against its competitors, as did the US Treasury yields.

An appreciation of the US currency makes gold more expensive for holders of other currencies.