lawmakers soon clinch a deal to raise the debt ceiling, that may offer further some measure of relief for oil,” he said. debt deal to the prospects of further demand-destroying rate hikes,” said Exinity’s Tan. Lambrecht said that survey-based estimates by news agencies of OPEC production for May are likely to confirm that a reduction of around 1 million barrels a day is being consistently implemented, which means the market is likely already undersupplied.įor now, oil benchmarks are “still caught up in the market’s cross-currents, ranging from optimism surrounding a U.S. Now, for all the bad news.Īlso see: Here’s what might lead to a spike in gasoline prices this summer Read: Gas will be much cheaper this Memorial Day Weekend. “Nonetheless, the production cut is not off the table yet, which should lend support to prices for the time being,” she said. OPEC+ countries in early April announced around 1.15 million barrels a day in production cuts that took effect at the beginning of this month, while Russia pledged to continue cuts of 500,000 barrels a day through year-end.įurther cuts appear unlikely since the latest round of reductions came into force only at the beginning of May, Barbara Lambrecht, commodity analyst at Commerzank, said in a note.

OPEC+ ministers are slated to meet June 4 in Vienna. On Thursday, Russia’s deputy prime minister, Alexander Novak, poured cold water on prospects for further reductions in remarks to a Russian newspaper, Reuters reported. However, oil’s advance for the week was “significantly pared after Russia hinted that another OPEC+ supply cut may not be forthcoming,” Han Tan, chief market analyst at Exinity Group, told MarketWatch. Analysts took the remarks as a threat that more output cuts may be in store. stock market closed on on Memorial Day?Ĭrude had found support earlier this week after Saudi Arabia’s energy minister, Prince Abdulaziz bin Salman, warned that oil short sellers should “watch out,” threatening a rerun of the price spike that occurred after OPEC+ output cuts were announced in early April. WTI and Brent crude on Friday both posted gains for a second week in a row. Prices have lost around half their value so far this year. Rose 1.2% to $2.70 a gallon, with prices tacking on 4.9% for the week, while June heating oilĪdded 1% to $2.37 a gallon, up 0.3% for the week.ĭropped 5.5% to $2.18 per million British thermal units, on the contract’s expiration day. The most-active contract, rose 80 cents, or nearly 1.1%, to $76.98 a barrel. The global benchmark, added 69 cents, or 0.9%, to $76.95 a barrel on ICE Futures Europe, for a weekly rise of 1.8%. Prices based on the front-month contract ended 1.4% higher for the week, according to Dow Jones Market Data. Rose 84 cents, or 1.2%, to settle at $72.67 a barrel on the New York Mercantile Exchange. West Texas Intermediate crude for July delivery Oil futures settle higher on Friday, contributing to a gain for the week, as investors weighed prospects for further cuts in crude production when the Organization of the Petroleum Exporting Countries and its allies meet in early June.

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