(LONDON) Oil prices rallied on Friday after a volatile week, with talk from U.S. leaders on an upcoming U.S. debt ceiling deal reassuring investors of a possible U.S. default.
Around 6 a.m. EST (12 p.m. Paris), a barrel of Brent North Sea oil, for delivery in July, was up 0.64% at $76.75.
Its American equivalent, a barrel of West Texas Intermediate (WTI) for delivery the same month, gained 0.82% to 72.42 dollars.
With a marked rise at the start of the week and a tumble on Thursday, prices are heading for a slight weekly increase: 1.55% for Brent and 1.05% for WTI.
Debt ceiling negotiations between the White House and the Republican opposition are “productive,” executive spokeswoman Karine Jean-Pierre said on Thursday, dispelling the prospect of debt default. UNITED STATES.
Such a default would risk causing a recession, which would dampen demand for black gold around the world.
“If U.S. policymakers come to an agreement quickly, it would boost oil prices,” said Exinity analyst Han Tan.
The remarks of the leaders of the members of OPEC (Organization of the Petroleum Exporting Countries and its allies) are also scrutinized in the run-up to its meeting in early June.
Saudi Arabia’s energy minister warned on Wednesday that investors betting on lower prices could pay the price, which was interpreted as a promise of deeper OPEC production cuts.
“However, we don’t expect production to decline further,” Commerzbank analysts said, noting that the latest announced production cuts only came into effect this month.
“The market is already undersupplied,” they add, noting that US trade reserves are at low levels.
