On Friday, both US and UK crude futures’ prices had edged higher, snapping a two-week long losing streak, following a robust recovery from Monday’s sharp downward spiral amid hopes that oil supplies would remain squeezed throughout the year.
In point of fact, both Brent and US WTI (West Texas Intermediate) crude futures’ prices had tumbled as much as 7 per cent on Monday over worries that a sharp spike in delta variants might add to hindrances in oil demand outlook, but both contracts had strongly rebounded to wrap up the week in an affirmative territory following release a flurry of fundamental data backing up the black gold futures.
In tandem, ANZ Research analysts had been quoted saying in a report published late this week that an output hike of 0.4 million bpd each month between August to December from OPEC+ member states would unlikely to keep the global oil market balanced citing a plausible rapid rise in demands.
On top of that, US energy services firm Baker Hughes said in a statement later this week that US drilling rig counts rose to 387 this week, the highest level since April 2020.
Oil prices post weekly percentage gain
Citing statistics, in the day’s commodity market wind down, UK crude futures had wrapped up the session 0.4 per cent higher to $74.10 a barrel following a 2.2 per cent jump a day earlier, while US WTI crude oil contracts’ prices had gained 0.2 per cent to settle down at $72.07 per barrel after surging as much as 2.3 per cent on Thursday.
On the week, UK crude added 0.7 per cent, snapping a three-week long losing streak, while US WTI crude added 0.4 per cent following two straight weeks of percentage decline. Adding further bullish bias for the crude oil contracts, Bank of America wrote in a client note, “We still think the OPEC+ driven dip in crude and distillate prices is a buying opportunity and project Brent will hit $100 a barrel next year, with distillates tagging along for the ride”.