Oil accelerated rebound, but could not avoid its first weekly loss in almost a month

Oil accelerated rebound, but could not avoid its first weekly loss in almost a month

The prices of Petroleum they rose more than 2% this Friday following a US debt ceiling deal that averted a default in the world’s biggest crude consumer and jobs data indicating a possible pause in rate hikes, while attention turned to a meeting of OPEC ministers and their allies over the weekend.

crude oil futures Brent rose $1.85, or 2.5%, to $76.13 a barrel, while US crude West Texas Intermediate (WTI) rose $1.64, or 2.3%, to $71.74 the barrel. Even so, both contracts posted their first weekly loss in three weeks, of around 1%.

The markets calmed down after the bipartisan agreement to suspend the debt limit of the US government, which amounts to 31.4 trillion dollars, which averted a sovereign default that would have rocked global financial markets.

Earlier signs of a possible pause in rate hikes by the Federal Reserve also served as support for oil prices, among other things because they weighed on the dollar.

Employment in the United States increased more than expected in May, but one wage restraint could allow the Fed to skip a rate hike this month for the first time since it embarked on a tightening campaign of monetary policy more than a year ago.

Investors’ attention is also focused on the Sunday meeting of the Organization of the Petroleum Exporting Countries and its allies, including Russia, collectively referred to as OPEC+.

In April, OPEC+ unexpectedly announced a cut of 1.16 million barrels per daybut since then price gains have receded and are below pre-cut levels.

On the demand side, the US Institute of Supply and Management (ISM) announced that its manufacturing PMI fell to 46.9 last month, the seventh consecutive month below 50, indicating a contraction in activity. .

For its part, manufacturing data from China, the world’s second largest consumer of oil, gave a mixed picture.

Source: Ambito

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