Oil fell for a second week in a row, although an earnings-driven rally on Wall Street lifted prices.
West Texas Intermediate rose the most in nearly four weeks on Friday, boosted by risk-on sentiment that benefited commodities in general. Oil largely followed broader market trends this week as many traders avoided betting large positions as they awaited the next decision from the US central bank.
Crude oil fluctuated sharply in April, rising to a 15-month high after the Organization of the Petroleum Exporting Countries and its allies announced a production cut. Prices subsequently gave up these gains amid technical pressures and a deteriorating outlook.
Recent economic data shows that US inflation continues to accelerate, bolstering expectations that the Federal Reserve will continue to raise rates and increasing the chances of a demand-sapping recession. Meanwhile, Russian supply has remained resilient despite Group of Seven sanctions, and China’s rebound has been slower than some expected.
Falling refinery margins in Asia are already showing weakness in the biggest oil-importing region, but China’s recovery is starting to take hold. Top Chinese refiner Sinopec said the country’s rebound will boost demand growth for refined oil products by more than 10 percent this year.
First-quarter oil earnings beat expectations with industry giants Exxon Mobil Corp. and Chevron Corp making profits not seen since oil topped $145 a barrel in 2008, nearly double the current price of around $75.
Prices:
- WTI for June settlement rose $2.02 to settle at $76.78 a barrel in New York.
- Brent for June settlement, which expires on Friday, rose $1.17 to $79.54 a barrel.
- The most active July contract is trading at $80.33 a barrel.
-With the help of Sri Taylor.
