Last Update: June 02, 2023, 01:43 AM IST
New York, United States (USA)
Brent crude futures settled at $74.28 a barrel, up $1.68, or 2.3%, to $74.65, their biggest daily gain since May 17. (Image: Reuters file)
US West Texas Intermediate crude (WTI) rose $2.01, or 3%, to $70.10 a barrel, posting its biggest daily gain since May 5.
Oil prices rose the most in two weeks on Thursday ahead of the OPEC+ meeting on Sunday, while passage by the House of Representatives to suspend the US debt ceiling helped offset the effect of rising inventories in the country.
US West Texas Intermediate crude (WTI) rose $2.01, or 3%, to $70.10 a barrel, posting its biggest daily gain since May 5.
Brent crude futures settled at $74.28 a barrel, up $1.68, or 2.3%, to $74.65, their biggest daily gain since May 17.
Both benchmarks recovered from two-straight sessions of losses after the House passed legislation late on Wednesday to suspend the US government’s debt ceiling and improve chances of averting default. The legislation now goes to the Senate.
“Successful debt ceiling talks clarify that minefield, but the overall demand outlook is still unclear – the trucking space is underperforming, for example,” said Stewart Glickman, research analyst at CFRA.
Market attention has shifted to the June 4 meeting of the Organization of the Petroleum Exporting Countries and allies including Russia, collectively known as OPEC+.
OANDA analyst Craig Erlam said, “The OPEC+ meeting later this week may warrant some caution around those (low price) levels, especially in light of the Saudi energy minister’s ‘watch out’ warning.”
Four OPEC+ sources told Reuters the alliance is unlikely to deepen supply cuts at Sunday’s meeting, but some analysts say it is a possibility as demand indicators from China and the US have been disappointing in recent weeks. Are.
US crude stockpiles unexpectedly rose last week as imports jumped and strategic reserves fell to their lowest since September 1983, according to Energy Information Administration data. [EIA/S]
“Third Bridge experts won’t rule out more aggressive actions from OPEC+, but the market tug-of-war right now is seasonal versus cyclical,” said Peter McNealy, analyst at Third Bridge.
“We are watching to see how strong summer demand from the developed world will be relative to China’s struggling cyclical recovery. That will determine how effective OPEC+ will be,” McNally added.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – reuters,
