The global benchmark Brent crude oil futures closed at US$76.18, while US West Texas Intermediate crude oil rose to US$74.05, the highest closing price since October 2018.
On Friday, oil prices climbed to their highest level since October 2018. The two benchmarks rose for the fifth consecutive week, as demand growth is expected to exceed supply, and OPEC+ will be cautious about returning more crude oil to the market from August.
The global benchmark Brent crude oil futures rose 62 cents, or 0.8%, to $76.18 per barrel, while US West Texas Intermediate (WTI) crude oil rose 75 cents, or 1.0%, to $74.05 per barrel.
This is the highest closing price of the two benchmark indexes since October 2018, and has caused these two contracts to rise by more than 3% this week.
Edward Moya, senior market analyst at OANDA, said: “Crude oil prices are rising due to improved demand prospects, and the market will continue to be tight because OPEC+ may only slightly boost production at the ministerial meeting on July 1.”
All eyes are on the Organization of Petroleum Exporting Countries, Russia and its allies-collectively referred to as OPEC+, and will hold a meeting on July 1 to discuss further relaxation of production reduction measures starting in August.
Stephen Brennock of PVM, an oil broker, said: “Given the optimistic outlook for demand, producer groups have enough room to increase supply without affecting the decline in oil inventories.”
Analysts said that in terms of demand, the key factor that OPEC+ must consider is the strong growth in the United States, Europe and China, thanks to the launch of the coronavirus vaccine and the economic reopening, which they say has been affected by rising COVID-19 cases. And other places.
The prospects for the lifting of sanctions on Iran and the prospect of more oil entering the market soon are bleak. A US official said that there are still serious disagreements on Tehran’s compliance with the 2015 nuclear agreement.
U.S. Secretary of State Anthony Brinken said on Friday that the lack of an interim agreement between the UN nuclear watchdog and Iran on monitoring atomic activities is a serious problem and has been communicated to Tehran.
The agency said on Friday that Iran has not yet responded to the UN nuclear watchdog over the extension of the monitoring agreement that expires overnight, after Washington warned hours earlier that not extending the agreement would undermine efforts to revive the 2015 Iran nuclear agreement.
“If Iran fails to reach an agreement before July 1, we expect OPEC+ to resume its monthly quotas and announce a moderate increase in production in August at the meeting next week,” said an analyst at ClearView Energy Partners LLC. Said in the report.
At the same time, according to data from energy services company Baker Hughes, the number of US oil rigs that are an early indicator of future production dropped by one this week to 372. Although the decline was small, the number of drilling rigs increased by 13 in June, which is the 10th month of growth – an increase of 48 in the second quarter, and the third consecutive quarter of increase.