Last update: April 29, 2023, 1:36 a.m. HST
Crude prices have fallen in recent weeks and months due to uncertainty surrounding further interest rate hikes that could reduce oil demand. (Image: Reuters file)
U.S. West Texas Intermediate (WTI) crude rose $1.92, or 2.6%, to $76.68
Oil prices rose more than 2% on Friday after energy companies posted positive profits and U.S. data showed crude production falling while demand for fuel rose.
On its last day as a first month, Brent crude futures for June delivery rose $1.13, or 1.4%, to $79.50 a barrel as of 1:54 p.m. EDT ( 5:54 p.m. GMT). The most actively traded July contract rose around 2.8% to $80.40.
U.S. West Texas Intermediate (WTI) crude rose $1.92, or 2.6%, to $76.68.
Brent and WTI recorded their second consecutive weekly decline, with a fourth straight monthly decline for Brent as disappointing US economic data and uncertainty over further interest rate hikes weighed on the demand outlook.
“The market was down for much of the week on concerns about an impending economic recession and an expanding banking crisis with the First Republic,” said Price Futures Group analyst Phil Flynn.
“But, today, there were headlines showing that there might be a solution to the First Republic problem, and there was data indicating an increase in demand for oil and a drop in production” , Flynn said.
U.S. officials are coordinating urgent talks to save First Republic Bank as private sector efforts led by the bank’s advisers have yet to reach an agreement, according to three sources familiar with the matter.
The U.S. Federal Deposit Insurance Corp (FDIC), Treasury Department and Federal Reserve are among government agencies that have begun orchestrating meetings with financial firms on a solution for the First Republic, the sources said.
U.S. crude production fell in February to 12.5 million barrels per day (bpd), its lowest level since December. Fuel demand reached nearly 20 million bpd, its highest level since November, according to the Energy Information Administration (EIA).
The number of oil rigs in the United States remained unchanged this week at 591, but fell by one in April in their fifth monthly decline, said energy services company Baker Hughes Co. [RIG/U]
Oil companies Exxon Mobil Corp and Chevron Corp are riding a wave of strong demand and have maintained the line on cost cutting implemented when fuel demand slumped during the COVID-19 shutdowns.
Crude prices have fallen in recent weeks and months due to uncertainty surrounding further interest rate hikes that could reduce oil demand.
For the week, Brent was on track to drop around 3% after falling 5% last week, and WTI was on track to drop around 1% after falling 6% last week. last week.
For the month, Brent was down less than 1% and WTI was on track to rise around 1% in April after falling for the previous five months.
US consumer spending was flat in March, but the continued strength of underlying inflationary pressures could prompt the Fed to raise rates again next week to curb inflation, stoking fears of a possible recession.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)
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