Oil prices rose by more than 2 percent today, Friday, after US data showed a decline in crude oil production and at the same time an increase in demand for fuel. Brent crude futures for June delivery rose $1.17, or 1.5 percent, to settle at $79.54 a barrel.
These contracts expire on Friday. The most traded contract for the month of July jumped 2.7 percent to $80.33 upon settlement, reports Al-Rai daily quoting Reuters.
US West Texas Intermediate crude rose $2.02, or 2.7 percent, to $76.78 at settlement. Although the two crude oil recorded daily gains, they fell for the second week in a row, and Brent crude recorded a decline for the fourth month amid the impact of disappointing US economic data and uncertainty about interest rates on demand expectations.
According to the Energy Information Administration, US crude production in February fell to 12.5 million barrels per day, the lowest level since December.
Fuel demand rose to nearly 20 million barrels per day, the highest level since November. Crude prices have fallen over the past weeks and months in light of concerns that interest rate moves may cut demand.
Brent crude fell by about 3 percent this week, after dropping about 5 percent last week, while West Texas Intermediate crude fell by about 1 percent this week, after dropping about 6 percent last week.
For the month of April as a whole, Brent crude fell less than 1 percent, while WTI rose nearly 1 percent, its first monthly increase in six months.
