Oil reports best weekly gains since April on robust demand outlook for 2024; Brent up 4% at $82/bbl

Brent crude futures settled down 13 cents astatine $82.62 a barrel, portion West Texas Intermediate (WTI) U.S. crude futures were down 17 cents astatine $78.54.

Brent and the U.S. benchmark gained astir 4% implicit the week, highest play emergence successful percent presumption since April.

Both benchmarks slipped aft a survey showed U.S. user sentiment weakened successful June to a seven-month low.

"The information came successful mode little than expected," said Bob Yawger, manager of vigor futures astatine Mizuho. "That implies the mean consumers don't person assurance the economical concern is improving."

Losses were constricted by forecasts for beardown demand.

The U.S. Energy Information Administration (EIA) upgraded its lipid request maturation estimation for 2024 slightly, and the Organization of the Petroleum Exporting Countries (OPEC) stuck to a forecast for comparatively beardown maturation of 2.2 cardinal barrels a time (bpd).

The International Energy Agency (IEA) meantime chopped its request maturation forecast to nether 1 cardinal bpd.

However, each 3 forecasters predicted a proviso shortage astatine slightest until the opening of winter, Commerzbank analysts highlighted.

Also this week, the U.S. Federal Reserve kept involvement rates connected hold, and investors judge complaint cuts are improbable earlier December.

"In presumption of the inactive uncertain economical outlook for the large economical regions, a further terms summation is not to beryllium expected for the clip being," said Commerzbank expert Barbara Lambrecht.

The U.S. progressive lipid rig count, an aboriginal indicator of aboriginal output, fell by 4 to 488 this week to its lowest since January 2022, vigor services steadfast Baker Hughes said.

Elsewhere, Russia pledged to conscionable its output obligations nether the OPEC pact aft saying it exceeded its quota successful May.

Prices dipped past week aft OPEC and its allies said they would signifier retired output cuts starting from October.

"No substance however galore times it promises to marque up for mediocre compliance astatine a aboriginal date, the marketplace conscionable sees much lipid and an statement that mightiness conscionable perchance unravel," said PVM expert John Evans.

Market absorption is besides connected Gaza ceasefire talks, which could alleviate concerns astir imaginable disruption to lipid proviso from the region.

Money managers raised their nett agelong U.S. crude futures and options positions successful the week to June 11, the U.S. Commodity Futures Trading Commission (CFTC) said connected Friday.

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Published: 15 Jun 2024, 09:49 PM IST