MTS Help Center

Oil hits highest level since February, posts ninth positive week in 10

Oil prices hit their highest level in nearly a year and were on track for a weekly gain on Friday, supported by Saudi Arabia’s pledge to cut output and strong gains in major equity markets.

Brent crude climbed 94 cents, or 1.8%, to $55.35 a barrel, and West Texas Intermediate crude futures (WTI) settled $1.41, or 2.8%, higher at $52.24 per barrel, also its highest since late February. Both benchmarks were on track for weekly gains of more than 6%.

“People are realizing the market is tighter than it has been in a while and that the commitment by Saudi Arabia to cut back production is going to keep the market balanced despite the concerns about shut-ins from COVID,” said Phil Flynn, senior analyst at Price Futures Group in Chicago.

Analysts said oil prices could see a correction in the coming months if fuel demand remains constrained by the pandemic. Strict restrictions on travel and other activity around the world to contain a surge in COVID-19 cases are weighing on fuel sales, weakening the prospect of an energy demand recovery in the first half of 2021.

Reference: CNBC