Oil prices were higher on Friday and headed for another solid weekly gain as supply concerns returned to the fore.
West Texas Intermediate crude for delivery in June CL.1,
rose $2.36, or 2.5%, to $110.82 a barrel. The contract closed up 0.4% at $108.26 a barrel on Thursday on the New York Mercantile Exchange.
July Brent crude BRN00,
the global benchmark, rose $2.13, or 2.3%, to $113.26 a barrel. The contract ended up 0.7% at $110.90 a barrel on ICE Futures Europe on Thursday.
June NGM22 natural gas futures,
rose 1.5% to $8.923 per million British thermal units. The contract jumped 4.4% to close at $8.783 per million British thermal units on Thursday, its highest since August 1, 2008.
June petrol RBM22,
rose 0.9% to $3.6915 a gallon, while June’s HOM22 heating oil,
rose 0.6% to $4.068 per gallon.
West Texas Intermediate crude and Brent crude were both on course for weekly gains of more than 5%, marking the third straight weekly gain for each, according to FactSet.
“Additionally, the EU’s ban on Russian oil imports and a surprise announcement from the US about the start of filling its SPR [strategic petroleum reserves] already this fall also underpinning the price,” he said.
In Brent, the next level of resistance is the April high around $115 with support at $110, he said.
Analysts said Thursday’s rally in oil was dampened by the sharp sell-off in Wall Street stocks and the strength of the dollar. The latter can act as a headwind for commodities priced in dollars, making them more expensive than those denominated in other currencies.
Lily: This trader predicted the collapse of bonds, the sale of technology and the surge in oil. She sees $260 worth of oil in a year.