Crude Oil Gains amid Predictions of Sixth Successive Week of Earnings

Oil surged on Friday, paving the way for yet another week of profits for the industry. This gain has been largely spurred by the ongoing geopolitical tensions between Ukraine and Russia which have, of late, interfered with production plans of OPEC+ countries leading to tightening supplies even as global demand recovers from its pandemic slump.

U.S. crude futures inched up by 0.4% at 5am ET with each barrel being priced at $86.92. Brent crude futures edged higher by 0.3% close to a four-month peak, with a price of $88.40 per barrel. U.S. Gasoline RBOB Futures rose by 0.7% at $2.5397 per gallon.

GAIN Capital’s Global Head of Market Research, Matthew Weller, contended that “The ongoing rally in crude oil is relentless, despite concerns about subdued demand as Omicron spreads across the globe like wildfire and a surging U.S. dollar in the wake of the hawkish FOMC meeting."

The OPEC+ is set to meet next week at the helm of Russia, where it is likely that the organization would adhere to its original plan of supplying 400,000 barrels per day, which is imperative since of late, it has faced difficulties in achieving its production goals.