Crude Oil Enters Weekend $2 Higher and Rises Over 3% This Week

Crude oil futures closed higher on Friday (June 3), supported by OPEC raising oil production targets higher than planned. Oil supply may remain tight as oil demand in China tends to increase following the start of the relaxation of COVID-19 control measures.

  • WTI crude futures were up $2, or 1.7 percent, at $118.87 a barrel.
  • BRENT crude futures were up $2.11, or 1.8%, at $119.72 a barrel.

This week WTI crude futures were up 3.3%, while Brent crude futures were up 3.6%.

Oil prices rose despite OPEC+’s decision to increase oil production in July.

OPEC agreed on Thursday to increase oil production by 648,000 barrels per day in July. This was more than the previous increase of 432,000 barrels per day.

Thursday’s release of U.S. oil inventory data also points to a tight oil market, according to the EIA. U.S. crude oil inventories fell by 5.1 million barrels last week.

Oil demand is expected to rise after Shanghai, China’s financial center and Beijing eased restrictions on COVID-19. In addition, the Chinese government has pledged to stimulate the economy.

The U.S. Department of Labor reported Friday that nonfarm payrolls increased by 390,000 in May. The unemployment rate remained stable at 3.6%.

The Spot Market is Closed

Saturday, June 4, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
11.00

120.26

+3.39

+2.90%

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