By Adedapo Adesanya
Crude prices recorded a mixed outcome on Friday but posted a weekly gain as expectations of a rebound in global demand outweighed concerns about more supply from Iran once sanctions are lifted.
The Brent crude futures closed 17 cents or 0.24 per cent higher to sell for $69.63 per barrel, while the West Texas Intermediate (WTI) crude futures lost 53 cents or 0.79 per cent to trade at $66.32 per barrel.
Business Post reports that Brent recorded a weekly gain of 4.8 per cent while the WTI appreciated by 4.31 per cent this week.
Boosted by good economic data from the United States and Europe, Brent is making a renewed bid for the $70 per barrel mark with ease in lockdowns and slow return to normalcy.
In the United States, the world’s largest economy and oil consumer, the number of Americans filing new claims for unemployment benefits fell to the lowest since mid-March 2020.
Also in the United States, crude oil output jumped 14.3 per cent in March to 11.2 million barrels per day after being hit by a cold snap in February, the government said in its latest monthly report.
Oil demand is projected to stabilize since the pandemic started, giving way to optimism in view of the rapid return of consumers.
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.
Despite these, there still remains a level of concern with coronavirus infections in Asia putting pressure on prices.
Infections in the South Asia region surpassed 30 million on Friday, led by India which is struggling with a second COVID-19 wave and a vaccine shortage across the region.
The prospect of more Iranian oil still continues to grip the market.
Balancing expectations of a recovery in demand against a possible increase in Iranian supply, the Organisation of the Petroleum Exporting Countries and allies (OPEC+) is likely to stick to the existing pace of gradually easing oil supply curbs at a meeting scheduled for Tuesday, June 1.
