Oil achieves weekly gains on supply balance

Oil rose on Friday and posted a weekly gain, as higher Chinese demand and OPEC+ supply cuts lifted prices. Brent crude gained 94 cents to settle at $76.61 a barrel, while US West Texas Intermediate (WTI) crude rose $1.16 to $71.78.

Brent posted a weekly gain of 2.4% and WTI rose 2.3%. Russian Energy Minister Nikolai Shulginov said it was “realistic” to reach oil prices of around $80 per barrel. In Iran, crude exports and oil output have hit new highs in 2023 despite US sanctions.

US oil rigs fell by four to 552 this week, while gas rigs fell by five to 130. Capping oil price gains was the prospect of rising interest rates, which could slow economic growth.

Money managers cut their net long US crude futures and options positions by 13,191 contracts to 73,273 in the week to June 13.