Oil Prices rose on Friday, heading for a fifth straight week of gains, with demand growth seen outstripping supply on bets that OPEC+ producers will be cautious in returning more output to the market from August. U.S. West Texas Intermediate crude futures rose 8 cents, or 0.1%, to $73.38 a barrel at 0216 GMT, headed for a 2.4% gain for the week.
Brent crude futures climbed 7 cents, or 0.1%, to $75.63 a barrel, headed for a 2.9% jump for the week. Both benchmark contracts hit their highest since October 2018 on Thursday.All eyes are on the Organization of the Petroleum Exporting Countries, Russia and allies, together called OPEC+, who are due to meet on July 1 to discuss further easing of their output cuts from August.
ANZ analysts said that they expect the OPEC+ alliance will try to balance the market’s need for more supply against the fragile nature of the recovery in demand at next week’s meeting. The prospect of sanctions being lifted on Iran and more of its oil hitting the market anytime soon has dimmed, with a U.S. official saying serious differences remain over a range of issues over Iran’s compliance with the 2015 nuclear deal.