On Thursday, oil prices surged over $1 a barrel, finishing the month on a high note due to expectations of OPEC+ persisting with production reductions, continuous assaults on Russian energy facilities, and a declining U.S. rig count leading to tighter oil supplies.
May Brent crude futures closed at $87.48 a barrel, marking their highest point since October 27, after an increase of $1.39 or 1.6%. The more frequently traded June contract ended at $87 a barrel, up by $1.58, coinciding with the expiration of the May contract on Thursday.
May delivery futures for U.S. West Texas Intermediate (WTI) crude closed at $83.17 a barrel, with an increase of $1.82, or 2.2%. Over the week, Brent experienced a 2.4% rise, while WTI saw an approximate 3.2% gain. Both indices concluded higher for the third month in a row.
In the previous session, oil prices faced downward pressure due to an unforeseen rise in U.S. crude oil and gasoline stocks, attributed to higher crude imports and weak gasoline demand, as reported by Energy Information Administration data.
Nonetheless, the rise in crude stocks was less than what the American Petroleum Institute had anticipated, and experts observed that the increase was below the typical level for this season.
“We anticipate that U.S. inventory growth will be less than usual, indicating a global oil market with a minor deficit,” stated SEB analyst Bjarne Schieldrop. “This is expected to provide ongoing support to the Brent crude oil price in the future.”
Prices were also bolstered by a 0.9 percentage point increase in U.S. refinery utilization rates last week. Additionally, the oil and gas rig count, a preliminary sign of future production, dropped by three to 621 in the week ending March 28, as reported by energy services company Baker Hughes (BKR.O).
