Oil prices jumped around a two-month high on Friday, with Brent crude on track for its biggest weekly jump in one and a half months, supported by the prospect of an European Union ban on Russian oil and the upcoming summer driving season in the United States.
Brent crude futures for July down 9 cents to $117.31 for a barrel at after increasing to as high as $118.17 earlier in the session. The benchmark was on track for a gain of about 4% this week. U.S. West Texas Intermediate (WTI) crude futures were down 18 cents, or 0.2%, at $113.91 for a barrel. WTI is set for a weekly gain of about 0.7%.
“Momentum is flat-out bullish, with many factors pointing to a tighter market, even more so with the European Union on the precipice of a total ban on Russian energy,” said, Stephen Innes, SPI Asset Management managing partner.
Both the benchmark crude contracts were composed to end the week higher as the European Commission (EU) continued to seek united support of all 27 bloc member states for its proposed new sanctions against Russia, with Hungary posing a bumble block.
Meanwhile, the Organization of the Petroleum Exporting Countries and allies (OPEC+) is set to leave 2021’s oil production deal changeless when it meets on June 2. The syndicate could raise July output targets by 432,000 barrels per day, refusing Western calls for a faster increase to lower surging prices, six OPEC+ sources told Reuters.