Oil prices rose at the close on Friday, supported by expectations that OPEC’s decision to increase production targets a little more than planned will not increase much supply in global markets, which is expected to decrease as China eases restrictions from Covid-19.
West Texas Intermediate crude rose to settle above $118, achieving a weekly gain of 3.3%, while Brent crude ended trading, Friday, at $121.35, with gains of $3.74, or 3.18%.
The OPEC + bloc, which includes the Organization of the Petroleum Exporting Countries (OPEC) and independent oil producers, including Russia, decided to increase production by 648,000 barrels per day in July and August instead of 432,000 barrels per day according to a previous agreement.
US crude achieved its sixth weekly rise due to the scarcity of US supply, which sparked talk of imposing restrictions on the export of fuel or an unexpected tax on oil and gas producers.
Demand has also increased. Shanghai, China’s financial hub, and the capital, Beijing, eased restrictions to combat the Corona virus and the Chinese government pledged to stimulate the economy.
(agencies)