Solid rise in oil over the week, with US demand

Brent closed Friday with a gain of 0.24% to $ 69.63 and WTI ended up 0.79% to $ 66.32. The weekly climb is around 5%.

Oil prices posted their biggest increase this week since mid-April amid optimism for US crude demand ahead of the extended Memorial Day weekend that kicks off the summer travel season.

A barrel of North Sea Brent for July delivery, which is the last day of listing in London, ended at $ 69.63, up 17 cents or + 0.24% from the close from yesterday. Over the week, it jumped 5.71%.

In New York, a barrel of WTI for the same month fell slightly by 53 cents or 0.79% to 66.32 dollars. But over the week, he gained 4.81%.

The prices of the two benchmark contracts are sailing close to their annual highs reached in early March, at $ 71.38 for Brent and $ 67.98 for WTI.

β€œIn recent weeks we have had a strong demand for fuels in the United States and a high level of refinery activity as Memorial Day weekend kicks off the summer travel season,” noted John Kilduff. of Again Capital.

This demand for fuels should intensify further in the coming weeks and intensify the activity of refineries which is still below the usual level for the season at 87% instead of 90% and more, said the analyst.

Jeffrey Halley, from Oanda, adds to this “the general feeling in the market that OPEC + will leave its production increases unchanged” at its meeting next week.

The twenty-three signatory countries of the OPEC + agreement, which brings together the producers of the Organization of the Petroleum Exporting Countries (OPEC) and ten allies meet on Tuesday, June 1 to stop their crude production for the coming months.

Mr. Halley also says he is confident in “the absorption by the international markets of Iranian oil”, if it were to return, “as the world economic recovery progresses”.

The Iranian oil industry is subject to an embargo by the United States but an improvement in relations between Washington and Tehran could lead to the easing of these sanctions and therefore to the arrival on the market of a large volume of black gold. .

But according to John Kilduff, investors are also watching the presidential elections in Iran as an ultraconservative candidate is the frontrunner “which raises questions for the diplomatic prospects to come” and could prove to be a factor on the rise for the course. petrol.

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