U.S: Oil posts biggest weekly gain since April

Oil posted its biggest weekly gain since the middle of April ahead of the U.S. Memorial Day weekend that kicks off the country’s summer driving season.

West Texas Intermediate rose 4.3% this week. A spate of positive U.S. economic data this week continued to highlight the recovery taking shape in the world’s largest oil-consuming country, while Americans are expected to unleash demand built up during the pandemic from this weekend onward.

With more drivers taking to the road and with some of the lowest gasoline stockpiles in almost 30 years, some see the U.S. facing a supply squeeze on par with those seen when a hurricane knocked out oil refineries in Texas and Louisiana.

“The demand outlook appears very robust, especially in the U.S., and it’s really improving in Europe as well,” said Edward Moya, senior market analyst at Oanda Corp. “There’s optimism that the advanced economies are going to have Covid in the reaview mirror by the end of the summer.”

Still, futures declined on Friday, snapping a five-day winning streak, as prices have remained stuck in a $10 range since March. Supply concerns remain over international talks to revive the Iran nuclear accord, which could pave the way for more oil flowing from the country.

Meanwhile, the Organization of Petroleum Exporting Countries and its allies will meet this week, amid growing environmental concerns in the oil and gas sector.

Bloomberg/Hauwa Abu