The Price Of Crude Oil Has An Extension Of Its Increase At The End Of Trade

JAKARTA - The crude oil price futures to extend its rise at the end of trading Friday, June 2. This is after the US Congress passed a debt ceiling deal that prevents default in the world's largest oil consumers and job data sparked hope for a possible break in the rise in the Federal Reserve interest rate. Citing Antara, the West Texas Intermediate Futures (WTI) crude oil for July delivery increased by 1.64 US dollars or 2.34 percent, to settle at 71.74 US dollars per barrel at the New York Mercantile Exchange. Brent crude futures for August delivery rose 1.85 dollars, or 2.49 percent, to close at 76.13 US dollars per barrel on the London ICE Futures Exchange. The closure was the highest since May 26 for WTI and 29 May for Brent. For this week, both contracts fell by about 1.0 percent, their first weekly losses in the past three weeks. Both the US Senate and the House of Representatives passed legislation to suspend the US government's debt ceiling until January 1, 2025, which essentially eliminates uncertainty surrounding the possibility of defaulting US debt. In addition, the United States added 339,000 non-farm payroll in May, higher than the 190,000 and 294,000 consensus forecasts in April, according to data issued by the US Bureau of Labor Statistics on Friday (2/6/2023). The price of crude oil ended strongly this week after reports of US work showed the economy was not yet ready towards recession, said Edward Moya, senior market analyst in OANDA, a multi-asset online trading service supplier. With oil at an uncomfortable rate for most energy-producing countries, no one wants a crude oil shortage ahead of the weekend meeting by the Organization of the Petrote Exporting Countries (OPEC) and its partners, Moya added.

OPEC and its partners are scheduled to hold a high-level face-to-face meeting on Sunday (4/6/2023) with oil production policies as a key topic. The Group announced in April a surprising production reduction of 1.16 million barrels per day, but the resulting price increases have been erased and crude oil is traded below the previous cutoff rate. "No one wants crude oil shortages ahead of the weekend's OPEC+ meeting.... Traders should not underestimate what Saudis will do and influence during the OPEC+ meeting," said Edward Moya, senior market analyst at data and analytics firm OANDA.