Last Update: June 17, 2023, 00:40 AM IST
New York, United States (USA)
Oil has rallied this week on hopes of rising demand from China. China’s refinery output rose to the second highest level on record in May. (Image: Reuters file)
Brent was on track for weekly gains of 1.9% and WTI was on track for an increase of 1.6%
Oil prices edged higher on Friday on higher Chinese demand and OPEC+ supply cuts and were on course for weekly gains despite expected weakness in the global economy and the prospect of further interest rate hikes.
Brent crude was up 48 cents at $76.15 a barrel by 1:16 p.m. EDT (1316 GMT). US West Texas Intermediate (WTI) crude rose 59 cents to $71.21.
Brent was on track for weekly gains of 1.9% and WTI was on track for a 1.6% increase.
Oil has rallied this week on hopes of rising demand from China. China’s refinery capacity rose to the second highest on record in May and Kuwait Petroleum Corp’s CEO expects Chinese demand to continue climbing during the second half.
Crude oil prices are also being supported by voluntary production cuts implemented by the Organization of the Petroleum Exporting Countries (OPEC) and its allies in May, as well as additional cuts by Saudi Arabia in July.
Russian state news agencies reported that Russian Energy Minister Nikolai Shulginov said reaching oil prices of around $80 a barrel was “realistic”.
Shulginov also said Russian oil and gas condensate production is expected to fall by about 20 million tonnes (400,000 barrels per day) this year, reiterating Russia’s expectations.
Iran’s crude exports and oil production are set to reach new highs in 2023 despite US sanctions at a time when other producers are limiting production, according to consultants, shipping data and a source familiar with the matter.
US oil rigs fell by four to 552 this week, the lowest since April 2022, while gas rigs fell by 5 to 130, the lowest since March 2022, energy services firm Baker Hughes Co said.
Preventing a rise in oil prices was the prospect of an increase in interest rates, which could slow economic growth.
The Bank of England is set to raise interest rates by a quarter of a percentage point next week. The European Central Bank lifted rates to a 22-year high on Thursday and the US Federal Reserve signaled at least a half-percentage point increase by the end of the year.
Investors are closely watching interest rates and commentary from Fed members.
“We’re going from Fed speaker to Fed speaker and data point to data point,” Phil Flynn, an analyst with Price Futures Group, said of oil prices.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – reuters,
