Oil on track for weekly rise amid global supply concerns


SINGAPORE: Oil prices dipped on Friday but stayed near a two-month high, with Brent crude on track for its biggest weekly jump in 1-1/2 months, supported by the prospect of an EU ban on Russian oil and the upcoming U.S. summer driving season.

Brent crude futures for July were down 21 cents, or 0.2%, at $117.19 a barrel at 0642 GMT after rising as high as $118.17 earlier in the session. The benchmark was still on track for a gain of about 4% this week.

U.S. West Texas Intermediate (WTI) crude futures were down 24 cents, or 0.2%, at $113.85 a barrel. WTI is set for a weekly gain of about 0.5%.

"Supply concerns are definitely in focus as (the) U.S. product market has tightened significantly, while the European Union is still considering ban on Russian crude exports," said Madhavi Mehta, commodity research analyst at Kotak Securities.

The "U.S. market will remain in focus in the near term as we are near the start of the summer driving season. Also in focus will be China's virus situation and whether more measures are being taken to support the economy," she added.

Both benchmark crude contracts were poised to end the week higher as the European Commission continued to seek unanimous support of all 27 EU member states for its proposed new sanctions against Russia, with Hungary posing a stumbling block.

A top Hungarian aide said the country needed 3-1/2 to 4 years to shift away from Russian crude and make huge investments to adjust its economy. Hungary could not back the EU's proposed oil embargo until there was a deal on all issues, the aide said.

"The combination of actual loss of supply and the increasing refusal to accept supply from Russia will see these commodities (oil and gas) move considerably higher," said Clifford Bennett, chief economist at ACY Securities.

Prices have gained about 50% so far this year.

OPEC+ is set to stick to last year's oil production deal at its June 2 meeting and raise July output targets by 432,000 barrels per day, six OPEC+ sources told Reuters.

The OPEC+ members would thereby rebuff Western calls for a faster increase to lower surging prices. - Reuters

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Brent , WTI , sanctions , Opec+

   

Next In Business News

Stocks, oil higher as China relaxes quarantine rules
China's economy recovering but foundation not solid, premier says
Inari indirect unit setting up JV in China to undertake OSAT manufacturing
United Malacca swings back into profit in 4Q22
PDB signs 6 additional agreements to sell working inventory and deadstock for RM132.93mil
AMMB secures MoF approval for sale of AmGeneral Insurance to Liberty Insurance
I-Bhd strides ahead with confidence following rebound in business
Kim Loong’s net profit jumps 38% to RM39.2mil in 1Q
Mah Sing to buy Tebrau land to develop RM469mil GDV project
KLCI jumps 16.62 points to 1-week high

Others Also Read