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Futures Movers: Oil logs weekly gain as supply worries dominate, gasoline closes at record high

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Oil prices were higher on Friday and headed for another strong weekly gain, as supply worries returned to the fore.

Price action

West Texas Intermediate crude for June delivery 
CL.1,
+1.42%

CL00,
+1.42%

CLM22,
+1.42%

rose $1.49, or 1.3%, to $109.75 a barrel on the New York Mercantile Exchange.

July Brent crude
BRN00,
+1.29%

BRNN22,
+1.29%
,
the global benchmark, rose $1.31, or 1.2%, to $112.21 a barrel on ICE Futures Europe.

June natural-gas futures 
NGM22,
-6.87%

retreated 7% to $8.164 per million British thermal units. The contract jumped 4.4% to close at $8.783 per million British thermal units on Thursday, its highest finish since Aug. 1, 2008.

June gasoline 
RBM22,
+2.88%

jumped 3% to $3.769 a gallon, while June heating oil
HOM22,
-1.04%

 pulled back 0.8% to $4.008 a gallon.

Market drivers

Both West Texas Intermediate and Brent crude were poised for weekly gains of nearly 5%, marking the third straight weekly gain for each, according to FactSet.

“In addition, the EU ban on Russian oil imports and a surprise U.S. announcement about starting to refill its SPR [strategic petroleum reserves] already this autumn also underpinning the price,” said Ole Hansen, head of commodity strategy at Saxo Bank.

In Brent, the next level of resistance is the April high around $115 with support at $110, he said.

Oil futures remained higher after Baker Hughes said the number of U.S. oil rigs rose by 5 this week to 557, while gas rigs were up 2 to 146.

Analysts said an upswing for oil on Thursday was curbed by the strong selloff for Wall Street stocks and dollar strength. The latter can serve as a headwind for dollar-priced commodities, making them more expensive compared than those based in other currencies.

Read: This trader predicted the bond meltdown, tech selloff and oil’s surge. She sees $260 oil within a year.

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