West Texas Intermediate crude closed 64 cents higher amid fears of reduced supply and support prices

InfoQuest – West Texas Intermediate (WTI) crude oil futures in New York closed higher on Friday (April 12), supported by geopolitical tensions in the Middle East that may impact oil supplies. But oil contracts fell this week after the International Energy Agency forecast a slow outlook for global oil demand. It was under pressure due to the possibility of lower-than-expected interest rates in the United States.

The West Texas Intermediate crude oil contract will be delivered in May. The price of oil rose by 64 cents, or 0.75%, to close at $85.66 per barrel. Brent crude oil contract for delivery in June. It rose 71 cents, or 0.79%, to close at $90.45 a barrel.

This week, West Texas Intermediate crude futures fell by more than 1% and Brent crude futures fell by 0.8%.

Oil prices are approaching the highest level in 6 months due to fears of this, and Iran is the third largest oil producer in OPEC, and this may be in response to the Israeli attack on the Iranian embassy in Syria last week.

Crude oil prices rose despite the International Energy Agency lowering its forecast for the expansion of global oil demand this year to 1.2 million barrels per day. While the OPEC group revealed on Thursday that global demand for oil may rise by 2.25 million barrels per day this year.

The oil market also received support from the announcement of energy services company Baker Hughes. The oil and gas rig count, which indicates future oil production, fell by three rigs to 617 in the week ending April 12, the lowest number since November. 2023

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