Crude oil futures closed higher on Friday as optimism about outlook for energy demand outweighed concerns about possible excess supply in the market in the event of OPEC+ deciding to increase crude production.
Thanks to the momentum in vaccine rollouts and the reopening of the economies in the U.S. and several counties across Europe, traders are betting on hopes energy demand will see a significant rise.
West Texas Intermediate Crude oil futures for August ended up by $0.75 or about 1% at $74.05 a barrel. WTI crude futures gained more than 3% in the week, gaining for a fifth straight week.
Brent Crude futures were up $0.46 or 0.61% at $76.02 a barrel a little while ago.
The Organization of the Petroleum Exporting Countries and their allies are scheduled to meet on July 1 to discuss further easing of their output cuts from August. The group had previously agreed to gently raise production until the end of July.
It is widely expected that producers will take a cautious approach to output increases and will try to balance the market’s need for more supply against the fragile nature of the recovery in demand.
A report released by Baker Hughes Friday afternoon showed the number of oil and gas rigs in the United States stayed the same this week, at 470. U.S. oil and gas rig count had increased by 9 in the previous week. The total number of active oil and gas drilling rigs in the U.S. is now up by 205 than around the same time last year. The oil rig count fell by 1 this week to 372, while the number of gas rigs increased by 1 to 98.
The material has been provided by InstaForex Company – www.instaforex.com