Oil closes higher, with scarce supply, weak dollar and US indicators

Oil advanced this Friday (29) and also accumulated gains in the accumulated this week. The commodity benefited from the prospect of tight global supply, after reports that the Organization of Petroleum Exporting Countries and allies (OPEC+) produced less than expected in June.

In addition, the dollar’s weakening against most of its global peers and strong US consumption data also supported the contracts.

On the New York Mercantile Exchange (Nymex), WTI oil for September closed up 2.28% (US$ 2.20) today and 4.14% on the week, at US$ 98.62, while the Brent was up 2.10% ($2.14) on Friday and posted a weekly gain of 5.68% on the Intercontinental Exchange (ICE) at $103.97.

Oil rose as much as 5% in New York, with WTI hitting $100 a barrel for the first time since last week, driven by a 1.1% rise in consumer spending and a 0.6% rise in personal income. of Americans in June, a figure that suggested still strong demand in the US, despite the recent interest rate hike by the Federal Reserve (Fed).

The main drivers of the day, however, were the weakening of the dollar against rival currencies such as the yen and the euro, as well as concerns about the global supply of the energy commodity. According to the Russian news agency interfaxbased on source, OPEC+ member countries produced 2.84 million barrels per day (bpd) less than planned for the month of June.

“With no major signs of destruction in fuel demand” and with the market persistently tight, “oil looks like it will soon find a home above the $100 a barrel mark,” predicts Edward Moya, an analyst at Oanda, in a commentary sent. to customers.

Also in the industry news, Russia and Saudi Arabia said they were committed to the stability of the commodity market, according to a statement from the Russian government. In addition, French President Emmanuel Macron intends to put pressure on Saudi Crown Prince Mohammed bin Salman over the country’s oil production.