Berita 24 English - Oil prices rose on Friday, bolstered by strong US economic data and expectations for a strong third-quarter rebound in...
Berita 24 English - Oil prices rose on Friday, bolstered by strong US economic data and expectations for a strong third-quarter rebound in global fuel demand. At the same time, concerns about the impact of any return of Iranian supplies eased.
Brent crude futures for July rose 16 cents, or 0.2 per cent, to $69.62 a barrel by 0050 GMT, while US West Texas Intermediate crude futures for July rose 32 cents, or 0.5 per cent, to $67.17 a barrel.
"Oil rose on strong economic data from the United States and growing sentiment that, if the Iran nuclear deal is revived, it will not include an immediate lifting of sanctions and that the oil market will not be quickly flooded with excess supplies," OANDA analyst Edward Moya wrote in a note.
Brent and WTI are both expected to post weekly gains of 5% to 6% as analysts anticipate global oil demand to rebound closer to 100 million barrels per day in the third quarter due to summer travel in Europe and the United States following widespread COVID-19 vaccination programs.
Economic data from the US, the world's largest economy and the largest oil consumer, also boosted risk appetite. The number of Americans filing new unemployment claims fell to its lowest level since mid-March 2020, exceeding expectations.
Balancing expectations for demand recovery against the possibility of increased Iranian supply, the Organization of the Petroleum Exporting Countries and its allies, including Russia, dubbed OPEC+, are likely to maintain their current pace of gradually easing oil supply curbs at their meeting on Tuesday, OPEC sources said.
Since April, Iran and world powers have been negotiating in Vienna to determine the steps Tehran and Washington must take to return to full compliance with Iran's 2015 nuclear deal with world powers.
Analysts anticipate that Iran will add between 500,000 and 1.5 million barrels per day of crude and condensate to the market once sanctions are lifted.
