Oil prices are rising on Friday after declining the day before. Investors continue to gauge the economic outlook for the U.S. and China, Trading Economics noted.
The cost of July futures for Brent on London’s ICE Futures Exchange is $76.53 a barrel by 8:16 a.m. on Friday, up $0.67 (0.88%) from the previous session’s closing price. Those contracts fell $1.1 (1.4%) to $75.86 a barrel on Thursday.
The price of WTI futures for June oil grew by $0.56 (0.78%) up to $72.42 per barrel at electronic auctions of New York Mercantile Exchange (NYMEX) by that time. At the end of previous session the contracts value has fallen by $0.97 (1.3%) down to $71.86 per barrel.
It has become clear in recent months that trends in the oil market are driven more by concerns about demand than supply, Colin Cieszynski, chief market strategist at SIA Wealth Management, told MarketWatch.
“In recent days, concerns about banks have given way to concerns about the (U.S. – IF-U) government debt ceiling,” Cieszynski explained. – The approach (of the negotiating parties – IF-U) to reaching an agreement aimed at avoiding a default on U.S. debt has supported stock markets and appears to be providing some support for the oil market as well.”
U.S. President Joe Biden, speaking earlier at the White House, said he was confident that “we will have an agreement and the U.S. will not default.
