Global oil prices rallied on Friday to resume their short-lived rally yesterday, with a second consecutive weekly gain as fears of oversupply in the market subsided, but gains restrained US President Donald Trump’s demand for OPEC to cut oil prices ahead of Algeria’s meeting on Sunday.
By 08:23 GMT US crude rose to $ 70.55 a barrel from the opening level $ 70.19, and recorded a high of $ 70.57, and the lowest level of $ 70.12.
Brent crude oil rose to $ 79.15 a barrel from the opening level of $ 78.65 and recorded a high of $ 79.15 and a low of $ 78.63.
US crude oil lost 1.2% on Thursday, the first loss in three days, on correction and profit taking, after hitting a two-week high of $ 71.33 a barrel earlier. Brent contracts also fell 0.9%.
On weekly trading, oil prices have soared by 2.5% in the second consecutive weekly gain, as fears of oversupply in the market eased, especially as Iran’s supply declined and US commercial inventories fell for the fifth week in a row.
As Asian countries continue to respond to US pressure to stop or reduce Iranian oil purchases, after South Korea and Japan stopped importing crude oil from Iran, India began to cut purchases of Iranian crude.
India, Iran’s second largest oil buyer, is scheduled to cut its monthly crude shipments from Tehran in September and October by about half.
Bank of America Merrill Lynch said in a reminder to customers that Iran’s crude oil exports have fallen 580,000 barrels per day in the past three months.
The US Energy Agency announced on Wednesday that the country’s trade inventories fell by 2.1 million barrels in the week ending September 14, and experts forecast a decline of about 2.7 million barrels, the fifth weekly decline in a row.
According to the data, total US commercial inventories fell to 394 million barrels, the lowest level since February 2015, in a positive sign of demand levels in the world’s largest oil consumer.
US President Donald Trump has linked his country’s support to Middle Eastern countries, especially members of the Organization of the Petroleum Exporting Countries (Opec), at oil prices and called on the world body to cut crude prices again.
“We protect Middle Eastern countries and others, they will not be safe, but they continue to push oil prices higher,” Trump said. “We will certainly remember that. OPEC, which monopolizes the oil market, has pushed prices down now.
It is worth mentioning that OPEC oil ministers are scheduled to meet with producers of non-OPEC countries next Sunday in Algiers to discuss the latest developments in the market, especially the current production levels, in view of the decline in supplies of Iran in the last period after the US sanctions.