Global oil prices continued their upward trend during trading on Friday, recording a rise for the second day in a row, putting markets on track to achieve a third consecutive weekly gain, in a strong indication of recovering demand and improved investor sentiment in the energy sector.
According to the latest market data, Brent crude futures saw a notable increase, rising by 44 cents, or 0.71%, to reach $62.43 per barrel by 02:03 GMT. Meanwhile, West Texas Intermediate (WTI) crude futures climbed by 39 cents, or 0.68%, to settle at $58.15 per barrel.
Outstanding weekly performance and market recovery
This continued rise follows a strong surge in both benchmark crude oils yesterday (Thursday), with prices climbing by more than 3%, thus recovering from losses incurred over the previous two days. Current forecasts indicate that Brent crude is on track to end the week with gains of up to 2.7%, while West Texas Intermediate is heading for a weekly increase of 1.4%.
This positive weekly performance for the third week in a row reflects a state of optimism in global markets, as the stability of oil prices above the $60 mark for Brent is considered an important psychological and technical support point for traders, often indicating a relative balance between global supply and demand.
Economic importance and general context
Oil price movements are of paramount importance in the global economic landscape, as crude oil is the primary driver of industry and transportation worldwide. Sustained price increases over consecutive weeks typically bolster the budgets of oil-producing nations, positively impacting their government spending and development projects. Conversely, consuming economies closely monitor these price hikes due to their direct impact on inflation rates and production and shipping costs.
It is worth noting that the price difference between Brent crude and West Texas Intermediate (WTI) stems from the different characteristics of each crude and its extraction region. Brent serves as a benchmark for pricing two-thirds of global oil production, while WTI reflects the dynamics of the US market, the world's largest oil consumer. The simultaneous rise in the prices of both crudes indicates the presence of shared global market drivers that are driving buying, beyond limited local factors.
