Oil Prices marginally up today

3 May 2024 , 05:42 PM

Early Friday trading saw an increase in oil prices. July Brent crude futures were up 16 cents to $83.83 per barrel. June  futures saw a 19-cent increase in the price of barrels of U.S. West Texas Intermediate crude to $79.14.

Even yet, both benchmarks were headed for weekly losses as investors were concerned that longer-term, higher interest rates may stifle growth in the United States, the world's largest oil user, even as the Middle East conflict appeared unlikely to affect the world's oil supply.

WTI was moving towards a weekly loss of 5.6%, while Brent was expected to fall 6.3%.

The reduction occurs just a few weeks before the upcoming conference of OPEC+, the Organisation of the Petroleum Exporting Countries and their allies led by Russia.

Although the organisation has not yet started official negotiations in advance of the June 1 summit, reports from OPEC+ producers suggested the group may continue its voluntary oil output restrictions of 2.2 million barrels per day past June if oil demand does not increase.

The market is currently focusing on U.S. economic data and signs regarding the world's largest producer's future supply of petroleum.

The monthly nonfarm payroll report, which is a gauge of the health of the labour market in the nation and is taken into account by the Federal Reserve when determining interest rates, is released by the U.S. Bureau of Labour Statistics on Friday. Higher rates usually have a negative impact on the economy, which can lower demand for oil.

The energy services company Baker Hughes is scheduled to report its weekly count of gas and oil rigs, a leading indication of future production of crude oil, on Friday as well.

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