Oil prices were little changed on Friday, with Brent holding near $70 a barrel as firm U.S. economic data and expectations of a strong rebound in global demand in the third quarter offset concerns about more supply from Iran once sanctions are lifted.
Brent crude futures for July fell 9 cents, 0.1%, to $69.37 a barrel by 0643 GMT while U.S. West Texas Intermediate crude for July was at $66.90 a barrel, up 5 cents, or 0.1%.
Prices are "running up against a wall", Howie Lee, economist at Singapore's OCBC bank said, referring to technical charts that showed prices have hit resistance levels.
"$65-$70 should still be the holding zone for oil unless there is a very good reason to go above $70," he said.
Brent and WTI are both on track to post weekly gains of 5% to 6% as analysts expect global oil demand to rebound closer to 100 million barrels per day in the third quarter on summer travel in Europe and the United States following widespread COVID-19 vaccination programmes.
"Boosted by good economic data and risk appetite among investors on the financial markets, Brent is making a renewed bid for the psychologically important $70 per barrel mark," said Commerzbank analyst Eugen Weinberg.
"Concerns about demand because of the pandemic are giving way to optimism in view of the rapid return of consumers," he added.
· Memorial Day gas prices are the highest in seven years and could stay high all summer
Gasoline prices are expected to be the highest for a Memorial Day weekend in seven years, and prices could stay elevated all summer, as Americans take to the road in a post-coronavirus pandemic driving spree.
The current average price for a gallon of unleaded gasoline of $3.04 per gallon, 16 cents more than a month ago and $1.08 per gallon higher than last year, according to AAA. The motor club federation expects 37 million Americans to travel this weekend, a 60% increase over last year when the economy was still shut down.
Reference: CNBC, Reuters
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