The
Organization of the Petroleum Exporting Countries (OPEC) and
allies on Tuesday said they would stick to agreed supply
restraints. A weekly supply report on Thursday showed U.S. crude
inventories dropped more than expected last week. [EIA/S]
Brent crude rose 12 cents, or 0.2%, to $71.43 a barrel by 1142
GMT. It reached an intra-day high of $71.99 on Thursday, the
highest since May 2019. U.S. West Texas Intermediate crude was
up 23 cents, or 0.3%, at $69.04.
"After much dilly-dallying, Brent appears to have found a new
home above $70," said Stephen Brennock of oil broker PVM.
"Summer and the reopening of the global economy is bullish for
oil demand in the second half of the year."
For the week, Brent is on track for a gain of more than 2.8% and
U.S. crude is heading for a 4% rise. It is the second week of
gains for both contracts.
"Oil prices are finding a tailwind from the clear signs that
demand is making a solid recovery," Commerzbank said.
Also boosting oil this week was a slowdown in talks between the
United States and Iran over Tehran's nuclear programme, which
reduced expectations of a rise in Iranian oil supply.
In focus later on Friday will be U.S. jobs figures for May. The
consensus forecast for non-farm payrolls, due at 1230 GMT, is
that about 650,000 jobs were added in May.
While rising demand and the fast pace of vaccinations in
countries such as the United States have boosted oil, a slower
inoculation rollout and high infections in the likes of Brazil
and India are hitting demand in high-growth oil markets.
(Additional reporting by Aaron Sheldrick in Tokyo and Roslan
Khasawneh in SingaporeEditing by David Goodman)
[© 2021 Thomson Reuters. All rights
reserved.] Copyright 2021 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|