On Friday, US and UK crude oil futures’ prices had gained further grounds with both benchmarks rising more than a herculean 4 per cent over the week, as a global-scale energy crisis amid a sharp bounce back in demands had sent US crude contracts to their strongest since 2014 and forced Beijing to ramp up coal production.
In point of fact, in the week’s Apollonian rally in crude oil futures’ prices was almost entirely galvanized by an OPEC+ move to stick on to their prior decision to increase outputs by 0.4 million bpd (barrels per day) each month between August to December, while market participants’ optimism had feathered up following a US Energy Department decision to back off from its previous plans to curb prices and ban US crude exports.
Nonetheless, as OPEC-kingpin Saudi had slashed its crude oil futures’ prices for certain Asian countries including India, one of the world’s largest crude oil importers, black gold contracts had pared some of its earlier gains.
However, growing optimism over an increase in factory activities across the globe but China alongside a few smaller Asian economies and a lingering shortage in natgas with wholesale prices breaching record highs in a number of EU member states and the UK, spread a bullish breeze across crude oil contracts’ prices over the week.
Crude oil leaps over 4% in the week
Citing statistics, in the day’s commodity market wind down, UK crude futures’ prices added 0.6 per cent to $82.56 per barrel, while US WTI (West Texas Intermediate) crude oil futures jumped 1.3 per cent to $80.11 a barrel, breaching a nearly seven-year peak of $79.78 hit earlier this week.
Meanwhile, citing prospects of further upswing in crude oil contracts’ prices over coming days, a senior analyst at Price Futures Group in Chicago, Phil Flynn said, “Oil prices are surging as the U.S. Department of Energy has backed off from plans that could curb prices by releasing SPR crude oil and banning U.S. crude exports. There’s not a lot of risk to being long. ”