Oil prices rise as supply concerns persist


NEW YORK, May 13 (Xinhua) -- Oil prices advanced on Friday as concerns over tighter supplies remain on the market.

The West Texas Intermediate for June delivery added 4.36 U.S. dollars, or 4.1 percent, to settle at 110.49 dollars a barrel on the New York Mercantile Exchange. Brent crude for July delivery increased 4.1 dollars, or 3.8 percent, to close at 111.55 dollars a barrel on the London ICE Futures Exchange.

The rally came despite data released Friday by Houston-based oilfield services company Baker Hughes showing that the number of total active drilling rigs in the United States rose by nine to 714 this week.

Oil rigs in the United States rose by six to 563 this week , gas rigs rose by three to 149, and miscellaneous rigs stayed unchanged at two, showed the data.

Concerns over supply risks lingered as the European Union (EU) worked on gaining support for an oil embargo against Russia.

Last week, the EU unveiled a plan to phase out Russian crude oil within six months and refined products by the end of the year, as part of its sixth sanction package aimed against Moscow.

Hungary and other Eastern European countries, whose economies are largely reliant on Russian oil, are not ready yet to accept the sanction package in its current form.

Traders also weighed risks to the demand side.

In its monthly report released on Thursday, the Organization of the Petroleum Exporting Countries revised down its forecast for world oil demand growth in 2022, citing impacts from geopolitical tensions and the COVID-19 pandemic.

For the week, the U.S. crude standard rose 0.7 percent, while Brent declined 0.7 percent, based on the front-month contracts.

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
   

Next In World

COVID is rising in the Americas, virus 'not going away anytime soon' -PAHO
With troops in Ukraine, Russia's defence spending leaps 40%
Russia expels 85 diplomats from France, Spain and Italy
Canada-U.S. asylum-seeker pact has adequate safeguards, Canada argues in court documents
Human Rights Watch documents 'apparent war crimes' by Russia in Ukraine
Finland and Sweden to buy firearms, anti-tank weapons together
Three decades later, convict in former Indian PM Gandhi assassination freed
EU plans 9 billion euros joint borrowing for Ukraine, more for reconstruction
Philippines' Marcos set for supermajority as 'Uniteam' dominates Congress
Russian soldier pleads guilty in war crimes trial in Ukraine

Others Also Read