Fundamental Comment

Oil rises, heading for second consecutive weekly gain

Oil rises, heading for second consecutive weekly gain

Oil prices rose during Friday's trading, with crude heading to its second weekly rise in a row, amid easing restrictions of the Corona pandemic by some countries, which paves the way for increased demand.

As of 07:44 GMT, West Texas Intermediate (WTI) crude futures traded at $24.07 per barrel, while the highest level recorded during the session was at 24.98.

Brent crude reached $29.84 a barrel, while the highest level recorded during the session was at $30.67.

The black gold benefited from more countries starting to ease restrictions imposed to halt the Corona pandemic spread, which boosted hopes for recovery in demand for crude oil.

Australia was the latest country to plan to ease restrictions on closures as the transmission rate of the pandemic slows, as it aims to ease limitations on social separation in three stages.

France, parts of the United States and countries such as Pakistan also plan to ease restrictions imposed to counter the spread of the world's worst health crisis in a century.

Brent and West Texas are currently for a second straight weekly advance, witnessing an increase of 13 and 21 percent respectively, so far, this week.

However, concerns remain over supply glut, as the amount of crude stored increases, raising the possibility that any increase driven by strong demand will be limited.

On the other hand, traders said yesterday, that US crude stocks in Cushing Storage Center in Oklahoma increased by about 407 thousand barrels in the week ended May 5.

Meanwhile, the dollar index, which measures the performance of six major currencies against the US dollar, slumped 0.12 percent at 99.79.

Share Article