Friday Oil Futures Surge Over 4 Percent

by Ship & Bunker News Team
Friday May 29, 2015

Crude futures Friday surged over 4 percent, following a decline in both U.S. oil inventories and the country's rig count, Bloomberg reports.

July Brent crude rose 4.76 percent, a gain of $2.98 to $65.56 per barrel.

WTI made a gain of $2.62 to $60.30 per barrel, a rise of 4.54 percent.

Data on Friday showed the 25th straight weekly decline in the U.S. rig count, as energy firms this week pulled thirteen rigs from U.S. oil fields, the biggest drop in four weeks, bringing the total rig count down to 646.

The U.S. Energy Information Administration (EIA) Thursday also said crude-oil inventories last week fell by 2.8 million barrels.

U.S. oil production was also reported to be at a 43-year high.

Meanwhile, next week's meeting of the Organization of the Petroleum Exporting Countries (OPEC) was said to be "top of mind" for traders, with the cartel widely expected to keep its output levels unchanged to defend market share.

"Although expectations widely suggest OPEC will keep target output levels unchanged (which is obviously bearish for oil), there are a lot of market players not willing to carry the risk into the weekend," said analyst Tyler Richey.

Last month the world's largest oil trader Vitol Group predicted that crude will likely trade between $50-$70 per barrel in the second half of 2015.

Ship & Bunker News Team
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