Crude oil prices rose by about 2.5%, at the end of today’s trading, Friday, June 2, to continue the gains achieved in the previous session; The approval of raising the US debt ceiling, and the possibility of the Federal Reserve stopping raising interest rates contributed to calming market concerns, in addition to the possibility of reducing OPEC + production during the weekend, which supported prices.
Passage by the US Congress of a bill suspending the US government’s debt ceiling of $31.4 trillion helped avert a catastrophic default that would have roiled global financial markets.
US crude inventories data issued on Thursday, June 1 (2023) from the Energy Information Administration also reinforced market trends, according to what was seen by the specialized energy platform.
Investors’ focus is currently on the meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies (OPEC +) on June 4 (2023).
Crude oil prices
At the end of the session, futures contracts for benchmark Brent crude – August 2023 delivery – rose by about 2.5%, to $ 76.13, according to what was monitored by the specialized energy platform.
US West Texas Intermediate crude futures – July delivery – rose 2.3%, to $ 71.74.
Crude oil prices jumped by about 3% at the end of trading on Thursday, June 1 (2023), supported by the possibility of stopping raising US interest rates, and taking decisive action to prevent default on the US debt, and this contributed to a state of optimism about increasing demand growth. on oil in China.
During the week ending today, both Brent and West Texas crude fell by 1.1% and 1.3%, respectively.
Oil price analysis
Baker Hughes data showed that the number of oil rigs in the United States decreased by about 15 rigs, bringing the total to 555 rigs.
Market analyst at OANDA, Edward Moya, said that oil prices witnessed stability after a round of disappointing global manufacturing data, indicating that it supported the position of OPEC + and discussed the possibility of further reducing production, according to what was published by Reuters.
While the American Institute of Supply Management revealed, on Thursday, June 1 (2023), industrial production contracted for the seventh month in a row during the month of May.
He said that the manufacturing PMI fell to 46.9 points over the past month, compared to 47.1 points in April; This indicates a contraction in manufacturing activity in the world’s largest oil consumer.
While the Chinese data was mixed; Official government data reported that factory activity in May contracted to a 5-month low, contrasting with the Caixin Index and S&P Global Platts Index after they showed a slight expansion over the past month.
Moya added: Traders believe that Russia may not necessarily stick to a hard line on production cuts, especially as they struggle to stick to their prices.
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