Oil prices surged above $75 a barrel on Friday, but sluggish global economic activity and gasoline demand threatened a fourth quarter of losses.
At 0912 GMT, September Brent crude futures increased 78 cents or 1.05% to $75.29. The less-traded front-month contract, expiring Friday, is up 91 cents to $75.25.
The contract was set for a fourth straight quarterly loss of 6% in the three months to June. Prices are at two-year lows.
WTI increased 65 cents or 0.9% to $70.51. The contract dropped 7% for the second consecutive quarter.
Markets have been hurt by rising inflation and interest rates in important nations and a slower-than-expected recovery in Chinese manufacturing and consumption.
However, last week, rising U.S. economic activity and soaring oil inventories provided assistance.
Saudi Arabia’s July 1 million-barrel-per-day cut and OPEC+’s 2024 production ceiling provide additional support.
“Despite the announcements of two fresh rounds of cuts from OPEC+/Saudi Arabia, crude prices have largely remained below $80 a barrel as the market has been driven less by fundamentals and more by macroeconomic concerns,” HSBC analysts wrote.
“We think this will continue to be the case for part of the summer, although the deep deficit of around 2.3 million barrels forecast for 2H23 should help to spur some upwards price momentum.”
U.S. first-quarter GDP was revised up to 2.0% from 1.3%.
After a cascade of better-than-expected economic data, Fed Chair Jerome Powell indicated on Thursday that the Fed will resume raising rates.
Friday’s U.S. oil rig count report will indicate future supply.
