Oil Prices Surge for Fourth Week in a Row

5 Jul 2024 , 10:23 AM

Oil prices were little changed in Asian trade on Friday, but they were on track for a fourth straight week of increases and remained near their highs since late April, boosted by expectations of robust summer fuel consumption and supply concerns.

Brent crude futures, which have increased 7% in the last four weeks, fell 2 cents to $87.41 per barrel.

US West Texas Intermediate (WTI) crude futures, which have risen 9% in the last four weeks, rose 9 cents to $83.97 from Wednesday’s finish. With the U.S. market closed for the Fourth of July vacation on Thursday, trading was light, and there was no settlement for WTI.

Oil prices increased this week on strong summer demand forecasts in the United States, the world’s top oil user.

The United States Energy Information Administration (EIA) recorded a massive 12.2 million barrel drop in stocks last week, contrary to analysts’ projections of 700,000 barrels.

U.S. data on Wednesday indicated that first-time applications for unemployment benefits surged last week, as did jobless numbers, which analysts said might speed interest rate reduction by the Federal Reserve and bolster oil markets.

On the supply side, Reuters reported on Thursday that Russian oil producers Rosneft and Lukoil will significantly reduce oil exports from the Black Sea port of Novorossiisk in July.

Meanwhile, Saudi Aramco reduced the price of the flagship Arab Light oil it would send to Asia in August to $1.80 per barrel above the Oman/Dubai average, highlighting the strain on OPEC producers as non-OPEC supply increases.

Analysts said traders were also keeping an eye on the Gaza conflict as well as elections in France and the UK.

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