Oil Prices Record Biggest Weekly Gains Since April: Oil prices recorded their biggest weekly gains since April after the “OPEC+.”
Alliance revealed its plan to return some production to the market, and fuel markets showed signs of strength.
Content
Signs of Strength in Fuel Markets
General Oil Outlook
Processing Oil in China
Oil Prices
Increases in Oil price
The price of West Texas Intermediate (WTI) crude settled above $78 per barrel, up 3.9% for the week.
Oil prices made most of their gains on Monday after traders “bought the dip” following
last week’s market sell-off after the “OPEC+” alliance’s decision to possibly restore supply later this year.
After this move led to prices dropping to their lowest levels in four months,
the group confirmed that it could temporarily halt or reverse production changes if necessary.
Signs of Strength in Fuel Markets
Refined products also supported the rise in crude prices with signs of seasonal strength.
Gasoline futures prices in New York rose about 0.7% this week,
while the diesel market in Europe indicates tighter conditions,
with the fuel premium over crude reaching a two-month high.
Earlier this week, aviation data showed a return of flights to pre-pandemic levels.
General Oil Outlook
However, the general outlook for crude oil became bleak this week after the International Energy Agency (IEA)
reduced its consumption growth forecast for this year and warned of a “large surplus” in the long term.
Crude oil prices have fallen about 10% from the peak reached in mid-April amid concerns
about China’s economic outlook and signs of rising supplies from the United States and other parts of the Americas.
At the same time, Federal Reserve officials this week projected only one interest rate cut this year, tempering market sentiment.
Processing Oil in China
According to most market observers surveyed by Bloomberg, the decades-long boom in oil processing activity in China
may stumble this year for the first time in data going back to 2004, excluding the hit during the COVID-19 pandemic.
Oil Prices
The price of West Texas Intermediate crude for July delivery fell 17 cents to settle at $78.45 per barrel in New York.
Brent crude for August settlement fell 13 cents to settle at $82.62 per barrel.
Oil Prices Record Biggest Weekly Gains Since April