Oil prices steadied near their highest levels since late April on Friday, set for a fourth consecutive week of gains driven by robust summer fuel demand and supply concerns.
Brent crude futures rose 0.1% to $87.51 a barrel, while U.S. West Texas Intermediate (WTI) crude futures increased 0.1% to $83.98. Trading volumes were thin due to the U.S. Independence Day holiday.
The U.S. Energy Information Administration (EIA) reported a significant 12.2 million barrel draw in inventories last week, far exceeding analyst expectations. Additionally, increased unemployment benefits claims and jobless numbers could prompt interest rate cuts by the Federal Reserve, supporting oil markets.
Supply concerns arose as Russian oil producers Rosneft and Lukoil plan sharp cuts to oil exports from the Black Sea port of Novorossiisk in July. Canadian oil producer Suncor Energy also shut down its Firebag oil sands site due to a wildfire.
Hurricane Beryl made landfall in Mexico, with potential impacts on U.S. oil projects if it continues its path. Meanwhile, Saudi Aramco has cut prices for its Arab Light crude sold to Asia, reflecting pressure from growing non-OPEC supply.
