On Friday, both UK and US West Texas Intermediate (WTI) crude oil futures surged 1 per cent, spacediving to their highest level in more than a year as hopes of an economic revival alongside a supply curb inclined by OPEC+ member states helped black gold contracts secure a sixth straight session of gains.
In point of fact, a flurry of key fundamentals had catapulted Brent crude futures’ prices closer to $60 a barrel as investors’ optimism over a large-scale pandemic relief bill from the US Government coupled with a potential supply curb seemingly had offset the impacts of a pandemic-driven demand-crunch.
On top of that, a rollout of a mass-scale vaccination campaign alongside a blowout rally in the Wall Street had supported crude oil futures’ prices. Nonetheless, US Labour Department’s job data apparently had played a pivotal role in the day’s commodity market, while a dovish outlook for US labour market in effect had fuelled up investors’ hope of a large-scale pandemic stimulus package as the US Congress had passed a budgetary bill late in the day which in effect would allow the Biden Administration to inject as many as $1.9 trillion in fresh capitals into the US economy as proposed earlier last month.
Government data released earlier in the day had shown that the US non-farm payrolls had added only 49,000 jobs last month, pointing towards further pain in a near-stagnant US labour market.
Black gold gobbles up gains on growth optimism
Citing statistics, in the day’s commodity market round off, Brent crude futures’ prices wrapped the day 0.9 per cent higher to $59.34 a barrel after hitting a session high of $59.79 earlier in the day, a level never seen since February the 20th, 2020, while US WTI crude oil futures’ prices surged 1.1 per cent to settle down at $56.85 a barrel.
US crude also had reached a session high of $57.29 per barrel before paring earlier gains late in the day, its highest level since January 22, 2020. In the week, US crude futures’ prices logged a weekly percentage gain of 9 per cent, the largest since October 2020, while UK crude had registered a 6 per cent in weekly gains.
Meanwhile, referring to a global business landscape, outlook of which had brightened up remarkably over the recent past, alongside a sharp output cut from OPEC+ nations, a senior market analyst at OANDA in New York said late in the day, “Brent is eyeing the $60 level now that OPEC+ has successfully eased most supply side concerns and optimism on the COVID front improves globally.
The fundamentals remain solid for crude, but a consolidation seems likely given the recent runup”.