Oil posted its first weekly gain since early April after tracking broader market sentiment that embraced risk assets on rising optimism that the US will reach a deal on the ceiling debt
Crude oil largely dropped out of key trading this week, as traders weighed news from Washington on attempts to avoid a catastrophic default. House Speaker Kevin McCarthy sent mixed messages saying a deal in principle could be reached as soon as this weekend, but added Friday that bipartisan talks in Washington are on “pause.”
Signs of tight supply are also helping to push prices higher. Asian refiners are once again snapping up U.S. oil cargoes, and industry watchers continue to predict global crude markets will go into deficit this summer.
Prices may rise in the second half of the year due to tight crude supplies, Francisco Blanch, head of commodities research at Bank of America Corp., told Bloomberg Television.
Crude remains down 11% this year as China’s economic recovery and the Federal Reserve’s monetary tightening weigh on the outlook. Fed officials injected some uncertainty into the market this week, appearing increasingly split on whether to raise interest rates or keep them steady at next month’s meeting.
Wildfires continued to rage in Alberta, Canada’s top energy-producing province, disrupting production and adding some restraint to the market. Rystad Energy estimates that about 240,000 barrels per day have been shut down due to the fires.
Prices:
- WTI for June delivery was down 31 cents at $71.55 a barrel in New York.
- Brent for July settlement fell 28 cents to settle at $75.58 a barrel.
-With the assistance of Grant Smith and Natalia Kniazhevich.
