oil prices

The struggle between the spreading pandemic in the less developed world and the revival of economic activity in the US, Europe, and China continues to keep prices volatile as they move steadily higher.

Prices rose last month with much positive economic data and signs of a fuel consumption revival in key economies offsetting a worsening coronavirus crisis elsewhere.

Prices fell last week with spreading coronavirus cases in countries such as India tempering optimism around positive signs out of the US and Europe.

Last week, oil prices saw their biggest weekly gain since early March as signs emerged of a recovery from the pandemic gaining traction in the US and China.

The markets posted their worst week since mid-March amid concerns that rising global coronavirus cases slowed economic recovery.

West Texas Intermediate and Brent crude futures posted solid increases on Thursday after OPEC+ decided to increase production slowly.

Prices were volatile last week as the grounding of the “Ever Given” container ship in the Suez Canal set off a chain of events that wreaked havoc on global trade.

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.