WTI climbs sharply more than 2% as demand for oil increases
- WTI is set to post back-to-back weekly losses, despite gaining more than 2% on Friday.
- US crude oil output shortages were outweighed by gasoline demand; therefore, WTI rose.
Western Texas Intermediate (WTI), the US crude oil benchmark, posted gains of more than 2% after US companies related to the energy sector exceeded earnings estimates. Furthermore, a government report flashed increased demand for fuel while crude oil output decelerated. At the time of writing, WTI is trading at $76.61.
Even though WTI is registering daily gains, it would finish the week with losses of 1.67%, extending its fall to two straight weeks concerning an impending slowdown in the United States (US).
The latest news reported by Reuters said that the US Federal Deposit Insurance Corp (FDIC), the US Secretary of Treasure, and the Federal Reserve held meetings with First Republic Bank, which is failing to reach a deal, to improve its financial position.
US crude output fell in February, as reported by the US Energy Information Administration (EIA) report, with production decelerating to 12.5 million barrels per day (bpd), the lowest level since December. Nonetheless, demand for fuel jumped to nearly 20 million bpd, its highest since November.
Meanwhile, the Baker Hughes report for April 28 reported that rigs drilling for oil in the US remained unchanged at 591, on a day that US companies reported earnings.