Oil posts monthly gains as US reports record output cuts in May

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Oil posts monthly gains as US reports record output cuts in May

On Friday, oil futures’ prices scheduled to be expired on August 20 had fleshed up and had clocked their monthly percentage gains by offsetting concerns related to a recessed global economy alongside a dented demand outlook, as investors had shown resilience to a steep downfall in eurozone GDP data in the second quarter of the year.

In point of fact, Friday’s gain of both US and Brent crude futures’ prices were almost entire catalysed by a breakthrough headline that said the US crude oil output cut in May had been the steepest on record, while a statement from the US Energy Information Administration revealing that the US energy consumption had faltered to a thirty-year low in April which eventually had led to the bankruptcies of a raft of US Shale operators, had prompted investors to overshadow the risks stemmed from a steady spike in pandemic cases across the globe.

US crude production pummels by the most in May on record

Besides, while a US EIA (Energy Information Administration) report unfurling US crude production had plummeted to an all-time low of 2 million barrels per day in May, spurring up investors appetite for the black gold, American Dollar’s dramatic fall on Friday alongside a turnaround in China business activities had added to market participants’ prospects as well.

Citing statistics, on Friday’s commodity market wrap up, UK crude futures’ prices winded down the day 0.90 per cent higher to $43.31 per barrel, while the US crude gained 0.93 per cent to $40.27 after drooling as much as 3.3 per cent in the previous session.

US crude posts a third straight month of gain and UK crude reports a rise for fourth consecutive month on Friday after having been bottomed in April.

Meanwhile, adding that the US energy industry had begun to witness the impacts of terrible earnings’ reports from the oil giants, an analyst at Price Futures in Chicago, Phil Flynn said on Friday, “After a bad day for big oil with terrible earnings, we’re starting to see the impact in barrels.

This suggests that we will see a tighter market in the future, and if the economy turns around, we will have trouble meeting demand.