{"id":10324,"date":"2024-04-05T12:19:23","date_gmt":"2024-04-05T12:19:23","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=10324"},"modified":"2024-04-05T12:19:23","modified_gmt":"2024-04-05T12:19:23","slug":"oil-heads-for-second-weekly-gain-on-tighter-supply-outlook","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/10324\/","title":{"rendered":"Oil heads for second weekly gain on tighter supply outlook"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0Oil prices extended gains on Friday and were on course for a second weekly gain, supported by geopolitical tensions in the Middle East, concerns over tightening supply and expectations about demand growth as economies improve.<\/p>\n

Brent crude was up 36 cents, or 0.4%, to $91.01 a barrel by 1031 GMT. U.S. West Texas Intermediate crude was at $86.79 a barrel, up 20 cents, or 0.2%.<\/p>\n

On Thursday both benchmarks settled at their highest level since October.<\/p>\n

Brent and WTI are set to notch a more than 4% gain this week, climbing for a second straight week, after third-largest OPEC producer Iran vowed revenge against Israel for an attack that killed high-ranking Iranian military personnel.<\/div>\n

“The market knows that some kind of retaliation from Iran is likely, but it doesn’t know any details which creates a great discomfort and nervousness,” SEB analyst Bjarne Schieldrop said.<\/p>\n

Israel has not claimed responsibility for the attack on Iran’s embassy compound in Syria on Monday.<\/p>\n

Ongoing Ukrainian drone attacks on refineries in Russia may have disrupted more than 15% of Russian capacity, a NATO official said on Thursday, hitting the country’s fuel output.<\/div>\n
The Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, known as OPEC+, this week kept their oil supply policy unchanged and pressed some countries to increase compliance with output cuts.<\/div>\n

“Further clampdowns on adherence to quotas should see output fall further in Q2,” ANZ analysts Daniel Hynes and Soni Kumari wrote in a note.<\/p>\n

“The prospect of a tighter market should see a drawdown in inventories during the second quarter.”<\/p>\n

Heavy oil supply has also tightened globally after Mexico and the United Arab Emirates cut exports of these grades.<\/div>\n

This comes amid solid global oil demand growth of 1.4 million barrels per day (bpd) in the first quarter, JPMorgan analysts wrote in a note.<\/p>\n

“Our high-frequency demand indicators estimate that total oil consumption in March averaged 101.2 million bpd, 100,000 bpd above our published estimates,” they said.<\/p>\n

Investors are awaiting a U.S. March employment report on Friday for further clues on the health of the U.S. economy and the direction of its monetary policy.<\/div>\n
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