Forexpros – Crude oil futures posted their fourth consecutive weekly gain last week, climbing to a six-week high on Friday after the International Energy Agency said it would not extend a release of additional oil supplies and amid easing concerns over a slowdown in U.S. oil demand.
On the New York Mercantile Exchange, light sweet crude futures for delivery in September traded at USD99.78 a barrel by close of trade on Friday, jumping 2% over the week.
It earlier rose to USD100.16 a barrel, the highest price since June 15.
The International Energy Agency said on Thursday that it would not release additional oil supplies from emergency reserves, saying that it “largely achieved” its goal after releasing 60 million barrels of oil last month in response to a loss of supplies from Libya.
IEA Executive Director Nobuo Tanaka said that while the agency saw no current need for a second release of oil supplies, he would continue to “closely monitor market conditions”, adding that the IEA was ready to act if “market conditions again warrant”.
On Thursday, crude prices were boosted after European Union leaders agreed on a second bailout package for Greece worth EUR159 billion, with bondholders agreeing to contribute to the bailout.
Weakness in the dollar had also contributed to oil’s strength. The dollar index, which tracks the performance of the greenback against of six other major currencies, sank 1.4% on the week to settle at 74.45, hovering close to a six-week low.
Oil prices typically strengthen when the U.S. currency weakens as the dollar-priced commodity becomes cheaper for holders of other currencies.
Meanwhile, the American Petroleum Institute, an industry group, said Friday that U.S. fuel demand rose 2.9% to 22.2 million barrels per day in June, as consumption of diesel by truckers reached a record high.
On Wednesday, the U.S. Energy Information Administration said in its weekly report that U.S. crude supplies fell by 3.7 million barrels last week, significantly higher than expectations for a 1.5 million barrel drop.
U.S. oil supplies have fallen for seven consecutive weeks, the longest run of declines in two years, easing fears over slowing demand from the world’s largest oil consumer.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for September delivery traded at USD118.56 a barrel by close of trade on Friday, advancing 0.9% on the week and up USD18.78 on its U.S. counterpart.