Oil prices rose by more than a dollar a barrel on Friday to record their second-straight week of gains, as supplies tightened in some parts of the world and US inflation data indicated price rises were slowing.
Brent futures for May delivery gained 50 cents to settle at $79.77 a barrel, gaining 6.4 percent for the week.
West Texas Intermediate crude (WTI) for May delivery settled higher by $1.30 at $75.67 a barrel, gaining about 9 percent for the week.
Data on Friday showed the US Personal Consumption Expenditure (PCE) index, the Federal Reserve’s preferred inflation gauge, rose 0.3 percent in February on a monthly basis, compared
with a 0.6 percent rise in
January.
Signs that inflation is slowing tend to support oil prices as this could point to less aggressive interest rate hikes from the Fed, lifting investor demand for risk assets like commodities and equities.
Oil prices were also buoyed after producers shut in or reduced output at several oilfields in the semi-autonomous Kurdistan region of northern Iraq following a halt to the northern export pipeline.
With prices recovering from recent lows, the Organisation of the Petroleum Exporting Countries and allies are likely to stick to their existing output deal at a meeting tomorrow.
Asia Asian spot liquefied natural gas (LNG) this week hit its lowest since early July 2021 as weak demand and solid inventories in northeast Asia continued to pressure prices, while Europe prepared to
exit winter with record inventories.
The average LNG price for May delivery into northeast Asia was $12.50 per million British thermal units (mmBtu), down $0.50 or 3.8 percent from the previous week, industry sources estimated.
Prices have fallen 55 percent year-to-date and more than 82 percent from the August 2022 peak at $70.50 per mmBtu.
Analysts said that a mild late winter, strong LNG inventories especially in South Korea, high expected nuclear availability, and the continued absence of firm Chinese spot cargo demand have curbed regional demand.
In Europe, a surprisingly mild winter has left the
continent in a better-than-expected position as it heads into the re-stocking season.
Europe’s vast onshore gas storage is over 50 percent full, compared with levels below 25 percent full at the same time in the last two years.
This means Europe needs a lot less gas this summer to meet storage targets ahead of next winter.
However, with less Russian pipeline gas this year, more of that gas must come as LNG, analysts said.
