Investing.com — OPEC’s bid for $80 and above oil got a boost from ally Russia this week as Moscow’s increasingly desperate offensives against Ukraine raised supply concerns in a market already besieged by the oil cartel’s rhetoric over cuts.
Crude prices were headed for a fourth straight week of gains as Russia continued to target Ukrainian food export facilities on Friday, seizing ships in the Black Sea and escalating tensions after withdrawing from a U.N.-brokered safe sea corridor agreement.
OPEC, or the Organization of the Petroleum Exporting Countries, meanwhile, continued its megaphone policy as Suhail al-Mazrouei, energy minister of the United Arab Emirates, told Reuters in an interview that the oil cartel is “only a phone call away” if more choking of supplies were needed.
With nearly 90 minutes to the day’s close, New York-based West Texas Intermediate, or WTI, crude was up $1.24, or 1.6%, to $76.89 per barrel on Friday. For the week, the U.S. crude benchmark was up 2%, after gains of 2.1%, 4.6% and 2.1% over three prior weeks.
London-based Brent rose by $1.19, or 1.5%, to $80.83 per barrel. For the week, the global crude benchmark gained 1.1%, after rising 1.8%, 4.8% and 1.4% over three previous weeks.
On a monthly basis, crude has climbed about 9% in July after June’s 4% gain. The run-up comes amid Saudi and Russian rhetoric about production cuts — an additional one million barrels per day each for the kingdom and half a million a day pledged by Moscow — as well as receding inflation data that suggested the Federal Reserve will be less aggressive with interest rates going forth.
WTI still stuck below $77 resistance
Notwithstanding those gains, the market has had trouble reaching beyond the OPEC target of $80 and above due to dismal growth data out of China, the world’s largest importer of oil, and spotty demand for gasoline in top oil consumer the United States — despite the advent of summer travel, which usually results in runaway usage of fuels.
“WTI crude has been rising since the end of June but has clearly found resistance just above the $77 level,” said Ed Moya, analyst at online trading platform OANDA.
“Next week, energy traders will have to pay attention to global flash PMI readings, a handful of major energy companies earnings, the standard weekly stockpile data points and some energy conferences which could provide some insight for the future shifts with supply and demand. WTI crude might continue its consolidation pattern between the $74 to $77 level.”