geopolitics

On Thursday, prices suffered their biggest weekly fall since October as signs of flagging demand in key markets halted a strong rally. 

Prices settled near $70 a barrel on Friday, supported by production cuts by major oil producers and optimism about a demand recovery in the second half of the year.

Futures rallied to the highest in nearly two years in New York after OPEC+ shocked markets with a decision to keep supply limited as the global economy starts to recover from a pandemic-driven slump. 

Crude oil futures finished the week sharply lower as a stronger dollar and expectations of rising global supply pulled prices off a 13-month high of over $67 a barrel, seen earlier last week.

The severe winter storm that swept through the United States last week likely shut in between 2 million and 4 million b/d of US crude oil production, IHS Markit said in an analysis.

 Prices in London climbed for a fourth straight week as efforts to clear an oil surplus are supporting oil prices until demand comes back to pre-pandemic levels.

Brent closed on Friday at $59.44—close to the benchmark’s $60 psychological threshold. Last week at this time, the spot price for Brent was just $55.04.

Prices remained in a narrow range for the third week, around $52 in New York and $55 in London.

The course of the coronavirus continued to roil the oil markets last week. After a 10 percent gain since the beginning of the year, oil reversed last week as new outbreaks of the virus accompanied by recent lockdowns appeared worldwide.

 Crude futures rode a late session upswing to end 2020 higher, as the market looked to a Jan. 4th OPEC+ meeting for direction. WTI settled at $48.52, and Brent settled at $51.80.

Weekly prices declined for the first time since October, as a new coronavirus mutation spread through parts of the world and poses risks to energy demand.