Oil prices rise for a 5th straight week amid lingering supply concerns

by   |  VIEW 1404

Oil prices rise for a 5th straight week amid lingering supply concerns

On Friday, both Brent and US WTI (West Texas Intermediate) crude oil futures had scored their fifth straight week of gains in a row despite a marginal slide in the session amid a profit-taking wave. In the day’s modest drag on crude oil prices was mostly catalysed by an unprecedented increase in US crude alongside fuel inventories, while market participants were found to be coffering up gains as beforementioned as both benchmarks had hit a seven-year peak earlier in the week.

On a technical viewpoint, according to data from US EIA (Energy Information Administration), US energy firms had curbed out the number of oil rigs for the first time in more than three months, while both US crude and gasoline stocks increased, eventually adding to further bearish bias in the day’s global commodity market.

Nonetheless, oil prices were largely backed by a Morgan Staley projection that raised UK crude futures’ prices forecast to $100 per barrel.

Crude oil posts 2 per cent in weekly gains

Citing statistics, in the day’ commodity market round-off, both UK crude contracts dipped 0.6 per cent to $87.89 a barrel, while US WTI crude oil futures’ prices slid 0.5 per cent to $85.14 a barrel.

Meanwhile, addressing to a lack of fresh impetus in the day’s commodity market alongside a downbeat US EIA data, PVM analyst Stephen Brennock, said, “The latest pullback is most likely due to a combination of pre-weekend profit-taking and the absence of fresh bullish catalysts”.

On the week, both benchmarks rose nearly 2 per cent, marking off a fifth straight week of gains. Oil prices have been up over a whopping 10 per cent this year (year-to-date) amid growing concerns of a squeezed supply line.