Dubai: Oil posted its sixth straight weekly gain, the longest winning streak since December, as the standoff between OPEC+ ministers over output extended negotiations to Monday.
Futures in New York rose 1.5% this week. Friday's meeting ended without a deal. The ongoing dispute among member on supply leaves open the possibility of a supply deficit in the global oil market over the second half of the year.
"Demand is continuously outstripping supply, even if you do get the gradual increase, demand will come on a lot faster, a lot stronger than they can raise output," said Phil Streible, chief market strategist at Blue Line Futures LLC in Chicago.
Oil jumped more than 10 per cent last month with the summer driving season boosting demand for U.S. crude and gasoline. The Organization of Petroleum Exporting Countries and its alliance have thus far taken a gradual approach to returning shuttered supplies, and calls for more output have increased in frequency. The world's third-biggest oil consumer, India, has raised concerns about price pressures, with the nation expecting fuel consumption to return to pre-pandemic levels by the end of this year.
The White House is also concerned about gasoline prices, but believes there is enough spare oil production capacity globally, said White House Press Secretary Jen Psaki on Friday. Skyrocketing crude oil prices have prompted U.S. refiners to look for alternative ways to maximize gasoline production during peak seasonal demand.
"The price at the pump for U.S. consumers as we enter summer travel season, we're in the middle of it now, is a real inhibitor," said Gary Cunningham, director of market research at Tradition Energy.