Brent’s global benchmark futures closed at $ 76.18, while West Texas Intermediate crude rose to $ 74.05, the highest close since October. of 2018.
Oil prices rose to their highest level since Friday, October 2018, placing the two benchmarks for a fifth consecutive week in expectations that demand growth will exceed supply and OPEC + will be cautious when it comes to returning crude to the market from August.
Brent’s world benchmark futures rose 62 cents, or 0.8 percent, to $ 76.18 a barrel, while West United States Texas (WTI) crude rose 75 cents, or 1.0 percent, to $ 74.05.
These were the highest closures of the two benchmarks since October 2018 and increased the two contracts above 3 per cent during the week.
“Crude oil prices rose in the face of improving demand and above expectations, the market will remain tight, as OPEC + is likely to give only a small boost to production at the ministerial meeting of the July 1, ”said Edward Moya, senior market analyst at OANDA.
All eyes are on the Organization of the Petroleum Exporting Countries, Russia and its allies, together called OPEC +, and they will meet on July 1 to discuss reducing their production cuts from August.
“The producer group has ample room to increase supply without derailing the decline in oil stocks, given the prospects for blonder demand,” said Stephen Brennock of PVM oil broker.
In terms of demand, the key factors that OPEC + will have to take into account are the strong growth in the United States, Europe and China, favored by the deployment of the coronavirus vaccine and the reopening of economies, according to analysts who said the increase in COVID-19 cases and outbreaks elsewhere was offset.
The prospect of sanctions being lifted in Iran and more of its oil reaching the market soon has waned, and a U.S. official has said serious differences remain in a number of issues over Tehran’s compliance. the 2015 nuclear deal.
The lack of an interim agreement between the UN nuclear watchdog and Iran on monitoring nuclear activities is a serious concern that has been communicated in Tehran, the U.S. secretary of state said on Friday. Anthony Blinken.
Iran has not responded to UN nuclear surveillance over the extension of a control agreement that expired overnight, the agency said Friday, hours after Washington warned that not prolonging it would harm efforts to reactivate the 2015 Iran nuclear deal.
“If no agreement is reached with Iran on July 1, we anticipate that OPEC + will re-establish monthly quotas and announce a modest increase in production for August at next week’s meetings. analysts at ClearView Energy Partners LLC said in a report.
Meanwhile, the number of U.S. oil rigs, a prime indicator of future production, fell one to 372 this week, according to energy services firm Baker Hughes Co. Despite this small decline, the platform count gained 13 in June, its tenth monthly rise. – and increased 48 in the second quarter, the third consecutive quarterly increase.