(Bloomberg) – Oil posted its biggest weekly gain since mid-April before Memorial Day weekend in the United States, the date that kicks off the country’s summer driving season.
West Texas Intermediate crude rose 4.3% this week. A series of positive economic data from the US continues to show the recovery that the country that consumes the most oil in the world is experiencing, while the Americans are expected to unleash the demand accumulated during the pandemic from this weekend.
With more drivers on the road and some of the lowest gasoline reserves in nearly 30 years, some predict the US will experience a supply shortage similar to those seen when a hurricane destroys oil refineries in Texas and Louisiana.
“The demand outlook looks very strong, especially in the US, and it’s really improving in Europe as well,” he said. Edward Moya, Senior Market Analyst at Oanda Corp. “There is optimism that advanced economies are going to have left COVID behind by the end of the summer.”
Still, futures fell on Friday, snapping a five-day winning streak, as prices have remained stagnant in a $ 10 range since March. Supply concerns persist related to international talks to reactivate Iran’s nuclear deal, which could pave the way for the country to export more oil. At the same time, the Organization of the Petroleum Exporting Countries and its allies will meet next week, and delegates said the alliance appears poised to approve an increase in oil production.
Original Note: Oil Posts Best Week Since April on Eve of Summer Travel Season
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