Oil prices rose by more than a dollar a barrel on Friday, recording an increase for the second week in a row, in light of tight supplies in some production areas, and US inflation data indicating a slowdown in inflation.
He added the weekly report of Al-Attiyah International Energy Corporation, and the prices of Brent crude futures contracts rose by 50 cents, to reach at the settlement of $ 79.77 a barrel, a weekly increase of 6.4 percent. While West Texas Intermediate crude settled at an increase of $1.30 to settle at $75.67 a barrel, achieving a weekly increase of 9 percent. The data showed that US personal consumption expenditure (PCE), the Fed’s preferred inflation measure, rose 0.3 percent month-on-month in February, compared to a 0.6 percent rise in January. The emergence of signs of slowing inflation usually leads to a rise in oil prices, as this could indicate a failure to raise interest rates by the Federal Reserve, which thus enhances investor demand for risky assets such as commodities and stocks. On the other hand, oil prices rebounded after producers shut down or cut production at several oil fields in the semi-autonomous Kurdistan region in northern Iraq following the disruption of the northern export pipeline. With prices recovering from their low levels, the Organization of the Petroleum Exporting Countries and its allies are likely to stick to the current production pact when they meet next Monday.
Gas prices fell
Spot LNG price in Asia this week recorded its lowest level since July 2021, with continued weak demand and high inventories in Northeast Asia, while European gas stocks are also recording record levels. The average price of LNG delivered in May to Northeast Asia was $12.50 per million British thermal units, down 50 cents or 3.8 percent from the previous week, industry sources estimated. Thus, Asian prices have decreased by 55 percent since the beginning of this year, and by more than 82 percent, compared to their peak in August 2022, at $70.50 per million British thermal units.
