Oil prices rose on Friday. Brent hit $72 a barrel for the first time since 2019 as OPEC+ supply discipline and recovering demand have countered concerns about the launch of a COVID-19 vaccine.
The Organization of the Petroleum Exporting Countries and its allies on Tuesday said they would stick to the agreed supply restrictions. A weekly supply report on Thursday showed U.S. crude inventories fell more than expected last week.
Oil grew after U.S. figures showed that nonfarm payrolls rose 559,000 last month. The US dollar weakened after the report. This makes oil cheaper for holders of other currencies. and support oil prices Read more
Brent crude rose 58 cents, or 0.8 percent, at $71.89 a barrel after touching $72.17, its highest since May 2019.
U.S. West Texas Intermediate crude rose 81 cents, or 1.2 percent, at $69.62, the session high of $69.76, the highest since October 2018.
Oil prices rose after US energy companies this week cut the number of oil and gas rigs operating this week. For the first time in six weeks, data from energy company Baker Hughes has revealed. Read more
“After a tough struggle, it looks like Brent has found a new home above $70,” said oil brokerage PVM Stephen Brennock. “The summer and the resumption of the global economy are favorable for oil demand in the second half of the year.”
Brent rose about 3% for the week, while U.S. crude rose nearly 5% for the second week of gains for both contracts.
In addition, this week’s increase in oil also slowed talks between the US. and Iran on Tehran’s nuclear program. That lowers expectations that Iran’s oil supply will return.
“Energy markets are trapped in Iran’s nuclear talks, which should improve next week,” said Edward Moya, senior market analyst at OANDA.
“The fifth round of negotiations will heat up next week. And that should be able to maintain oil prices. Because Tehran will stick to the red line to restore the nuclear deal.”
meanwhile U.S. crude oil output tends to grow slower than expected As shale producers add a limited number of specialized drilling rigs to boost production. By choosing to push prices and profits higher instead. Read more
As the growing demand and rapid growth of vaccination in countries such as the United States has added more oil. Slow vaccine launches and high infections in Brazil and India are hurting demand in high-growth oil markets. Read more
“Not every country in the world is in full recovery mode,” said Louise Dickson, oil market analyst at Rystad Energy. But at the moment there are no hiccups. That can reverse the upward momentum caused by strong demand in the summer.”
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