Last Update: June 03, 2023, 02:02 AM IST
New York, United States (USA)
US drillers have been cutting drilling for months as US crude prices plunged 11% since the start of the year and natural gas futures fell 51%. (Image: Reuters file)
Brent futures rose $1.85, or 2.5%, to $76.13 a barrel, while US West Texas Intermediate (WTI) crude rose $1.64, or 2.3%, to $71.74.
Oil prices rose more than 2% on Friday after the US Congress passed a debt ceiling deal with the world’s biggest oil consumer and the government missed out on jobs data, prompting the Federal Reserve to There was hope of a possible pause in the rise in interest rates.
The focus is now on the meeting of OPEC and its allies later this week.
Brent futures settled up $1.85, or 2.5%, at $76.13 a barrel, while US West Texas Intermediate (WTI) crude rose $1.64, or 2.3%, at $71.74.
Highest close since May 26 for WTI and May 29 for Brent. For the week, both contracts were down about 1% in their first weekly losses in three weeks.
Open interest in futures contracts reached its highest level of July 2021 for Brent and March 2022 for WTI on Thursday.
The US Senate approved a bipartisan deal to suspend limits on the government debt ceiling, following approval in the House of Representatives, averting a default that shook financial markets.
US employment rose more than expected in May, but a slump in wages could allow the US Federal Reserve to skip a rate hike this month for the first time in more than a year, which could support oil demand.
Oil traders will watch the June 4 meeting of OPEC+, the Organization of the Petroleum Exporting Countries (OPEC), and allies including Russia. In April the group announced a surprise output cut of 1.16 million barrels per day, but the resulting price gains have been erased and crude is trading below pre-cut levels.
OPEC+ is debating additional oil production cuts as one of the possible options, three OPEC+ sources told Reuters on Friday.
“Nobody wants to be short crude at the OPEC+ meeting at the end of the week. … traders should never underestimate what the Saudis will do and take advantage during OPEC+ meetings,” said Edward Moya, senior market analyst at data and analytics firm OANDA.
Saudi Arabia is the largest producer in OPEC.
In the US, energy firms this week reduced the number of oil rigs by the most since September 2021, reducing the overall count for the fifth week in a row, closely followed energy services firm Baker Hughes Co. reported. said in.
US drillers have been cutting drilling for months as US crude prices plunged 11% since the start of the year and natural gas futures fell 51%.
In memory of the upcoming Atlantic hurricane season, Tropical Storm Arlene formed in the Gulf of Mexico near Florida. Weakening is expected over the next day as it moves south toward Cuba, moving away from US Gulf Coast oil and gas infrastructure.
On the demand side, manufacturing data from China, the world’s second-biggest oil consumer, painted a mixed picture.
China is suffering from an early heat wave that is expected to last until June, straining power grids as consumers in mega-cities such as Shanghai and Shenzhen crank up the air conditioners.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – reuters,
