ALBAWABA – Oil prices rose more than 2 percent over the weekend after United States (US) data supported expectations of demand growth, as the US dollar also gained, while both crude benchmarks fell for a seventh straight week.
Brent crude futures settled at $75.84 a barrel on Friday, up $1.79, or 2.4 percent, Reuters reported, while US West Texas Intermediate crude futures settled at $71.23, up $1.89, or 2.7 percent.
By Saturday, WTI and Brent crudes were both up 2.42 percent and 2.73 percent, respectively, at Friday’s oil prices, as the OPEC Basket held at $78.31 per barrel, according to OilPrice.com/
For the week, both benchmarks lost 3.8 percent, after hitting their lowest since late June on Thursday, which Reuters interpreted as a sign many traders believe the market is oversupplied.
Yet, Friday's gains, the first in six sessions, could be a sign that the market has found a floor for now after falling for six straight sessions, Phil Flynn, analyst at Price Futures Group, told Reuters.
Oil prices up on stronger US dollar - Shutterstock
On the demand side, gasoline consumption last week lagged the 10-year seasonal average by 2.5 percent and inventories rose by 5.4 million barrels.
As a result, gasoline prices plummeted to two-year lows last week. But like crude, US RBOB gasoline futures on Friday rebounded around 3 percent from two-year lows on Thursday.
Meanwhile, Investing.com’s US Dollar Index was up 0.43 percent at 1240 Amman Time, with Bloomberg’s US Dollar Index Spot was up 0.45 percent, at 104.0100.
The Euro and Pound Sterling lost 0.29 percent and 0.36 percent, respectively, against the US dollar, which gained 0.57 percent against the Japanese Yen.
Economic data on Friday from the US boosted Treasury yields at first, pushing the US Dollar higher, paradoxically driving oil prices up as well. The data indicated the labor market is still relatively strong, which has made a US interest rate cut come March 2024 a little less likely.
