Oil prices rose on Friday following the unexpected drop in the US unemployment rate recorded in May and OPEC’s expectation of whether record production cuts will be extended to Saturday.
Brent crude futures settled up $2.31, or 5.8%, at $42.30 a barrel, surging 19.2% on the week. West Texas Intermediate (WTI) crude futures rose $2.14, or 5.7%, to $39.55 a barrel, rising 10.7% on the week.
The U.S. Labor Department reported a surprise fall in the jobless rate to 13.3% last month from 14.7% in April.
Brent has risen 17% since May 29, reaching a higher three-month high for producers like Russia. The contract has more than doubled as it fell to $ 15.98 per barrel on April 22. WTI increased by 11%.
Both benchmark turned to sixth week earnings, along with signs of production cuts and improved fuel demand, as countries eased the deadlocks to combat the new coronavirus outbreak.
Leading oil producers said the possible video conference of the group, known as OPEC +, including Russia, will be held on Saturday.
The market is hopeful that some delayed countries may have agreed to comply with the cut-off agreement.
If OPEC +, Iraq, and others agree to increase loyalty to supply cuts, the planned meeting next week will gain importance.
Two OPEC + sources said Saudi Arabia and Russia may have agreed to make deeper cuts by the end of July, but Riyadh is said to have had difficulty extending it by the end of August.
If OPEC + does not agree to extend output cuts, the cut may fall to 7.7 million bpd from July to December, as previously agreed.
