Crude-oil prices recovered some ground on Friday after Thursday’s near-5% drop, as investors reassessed OPEC’s nine month extension of its production cap.
They ignored another rise in the number of oil rigs in use in the US last week.
In New York, July West Texas Intermediate crude futures rose 90 cents, or 1.8%, to settle at $US49.80 a barrel, after dropping 4.8% Thursday.
That left them down 1.7% for the week.
In London, July Brent crude climbed 69 cents, or 1.3%, to $US52.15—down about 2.7% for the week. The losses followed gains the two previous weeks,
Services group, Baker Hughes reported a 19th consecutive weekly rise in the number of active US oil rigs in use.
Drillers added two oil rigs in the week ended May 26, bringing the total number of operational rigs to 722, Baker Hughes said on Friday night.
While that was more than double the 316 rigs that were drilling for oil at this time a year ago it was only up 2 for the week – the smallest weekly move this year.
Over the month, drillers added 35 rigs, the slowest pace of growth since November.
The total active US rig count, which includes oil and natural-gas rigs, climbed by 7 to 908.
The Energy Information Administration reported US oil production totalled 9.320 million barrels a day the previous week – 553,000 more than a year ago and why the weekly rig count is a god indicator of rising production.
OPEC and Russia agreed to extend the 1.8 million barrels a day cap on production to next March. It had been due to expire at the end of next month.
Gold on Friday closed at its highest level for May, up for a third week in a row as a fresh round of geopolitical jitters offset expectations for higher US interest rates, which would otherwise be bearish for gold.
President Trump’s first overseas trip, including the Group of Seven meeting, the coming UK elections, where Prime Minister Theresa May is losing her large lead and North Korea, all combined to push prices higher.
“At the moment it’s increasing political uncertainty that is driving the gains rather than [Federal Reserve] speculation,” Colin Cieszynski, chief market strategist at CMC Markets, told MarketWatch.
“Between [Thursday’s] contentious NATO summit and the potential for fireworks at this weekend’s G-7 Summit, plus a tightening U.K. election race, capital has been moving back in to defensive havens like gold,” he said, adding that silver and the Japanese yen have been climbing. The yen is typically viewed as a currency that investors turn to in times of heightened uncertainty,” he said.
Comex June gold futures rose $US11.70, or 0.9%, to settle at $1,268.10 an ounce. The settlement was the highest since April 28, according to FactSet data.
Prices rose around 1.2% for the week, they’re third weekly advance in a row.
Comex July silver futures rose 13 cents, or 0.8%, to $US17.323 an ounce, up around 3.1% for the week.
And July copper futures fell 1.2% to $US2.566 a pound, which left them down about 0.6% for the week.
