Oil Updates: Prices are Expected to Rise for a Fourth Consecutive Week

Oil Updates: Prices are Expected to Rise for a Fourth Consecutive Week

With expectations of robust summer fuel demand and some supply concerns, oil prices were little changed in Asian trade on Friday, but they were on course for a fourth straight week of rises and held close to their best levels since late April, according to Reuters.

After rising 7% over the previous four weeks, Brent crude futures fell 2 cents to $87.41 per barrel by 3:43 a.m. Saudi time.

US West Texas Intermediate oil futures increased by 9 cents from Wednesday’s closing to $83.97, continuing their nine-week surge. There was no settlement for WTI and minimal trade on Thursday due to the US market being closed for the Fourth of July vacation.

Due to robust summer demand forecasts in the US, the world’s top oil user, oil prices increased this week.

Analysts at ANZ Research stated in a note on Friday that “strong mobility indicators and intensifying geopolitical tension in the Middle East have supported market sentiment this week.”

Compared to analysts’ predictions of a draw of 700,000 barrels, the US Energy Information Administration said last week that stockpiles had drawn a staggering 12.2 million barrels.

US data released on Wednesday revealed that despite the number of unemployed people climbed last week, more people applied for unemployment benefits for the first time. This surge in applications, according to analysts, may have accelerated US Federal Reserve interest rate decreases and supported the oil markets.

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