Oil Prices Up 1% Friday Despite OPEC+ Output Hike Plan

05/06/2022

Oil prices rose over 1 percent on Friday despite the Organization of the Petroleum Exporting Countries and its allies' (OPEC+) decision to increase production targets.

International benchmark Brent crude for August delivery rose by $2.11, or 1.8 percent, to close at $119.72 a barrel, while US West Texas Intermediate (WTI) crude for July delivery climbed $2, or 1.7 percent, to settle at $118.87 a barrel.

For the week, Brent rose for the third consecutive week in a row, while WTI posted a sixth weekly gain.

On Thursday, OPEC+ agreed to boost output by 648,000 barrels per day (bpd) in July and August rather than their planned 432,000 bpd.

Meanwhile, US crude oil inventories fell by 5.07 million barrels for the week ending on May 27, the Energy Information Administration (EIA) said on Thursday.

Distillate stockpiles fell by 0.53 million barrels in the week, while gasoline inventories also fell by 0.71 million barrels, the EIA added.