Oil gained 1% on Friday but decline for the week
Bullish expectations over the summer demand in the US drove the market higher, however, traders are obviously anxious about the FED’s interest rate decision.
International benchmarks for crude oil ended the trading session on Friday, 24 May 2024 at around 1% higher as investors took a step back to assess if the recent sell-off was exaggerated. Still, both benchmarks – Brent and WTI posted a weekly decline of more than 2%.
Bullish expectations over the summer demand in the US drove the market higher, however, traders obviously anxious about the FED’s interest rate decision. Higher-for-longer lending rates environment tends to impede oil demand.
Meanwhile, in an unusual disclosure, Russia admitted it surpassed its OPEC+ production quota in April due to "technical reasons," underscoring Moscow's difficulties in controlling output.
Brent futures increased by 76 cents to settle at $82.12/barrel.
WTI rose by 85 cents or 1.1% to settle at $77.72/barrel.