Crude Oil Prices Gain More Than 3% WoW, Saudis Demand Compliance

In addition, America reported more than 55,000 new COVID-19 caseloads recently, a new daily global record for the worst pandemic recorded in human history. The surge in COVID-19 caseloads anticipates that impressive U.S. jobs data, which rose in June, could pause.

“If this trend continues, oil demand in the region is at risk,” said Louise Dickson of Rystad Energy.

Both International benchmarks for crude gained more than 3% WoW, triggered by strong U.S. June job numbers and a drop in U.S. crude oil reserve. Brent crude gained about 4% WoW.

America’s trading session witnessed thin market liquidity at the Oil futures market on Friday because of the Independence Day holiday observed.

“The fragile U.S. economic rebound is at risk of being undone by the latest surge in new infections,” said Stephen Brennock of oil broker PVM.

Meanwhile, the Saudi’s continued to lobby other OPEC members in complying with their output cuts.

“Saudi Arabia reportedly continues to take a muscular approach in warning OPEC+ participants to maintain compliance with the production cut agreement and compensate for the previous under-compliance in the case of a few laggards.

“OPEC compliance is crucially essential for maintaining market balance and ultimately drawing down global inventories.”  Stephen Innes, Chief Global Market Strategist at AxiCorp said in a note.

Consequently, Signals of economic recovery, and plunge in oil production after a record supply cut by the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, has helped Crude oil to rally more than twice its price from a 21-year low below $16 reached in April.