Oil prices rise nearly 3% on global supply shortage concerns

Oil prices rose 3% in European trade after hovering near two-week highs for the last couple of days, now heading for the first weekly profit in a month. 

Prices are also boosted by a drop in US crude stocks according the latest US official data, in a positive sign for demand in the US. 

Global Prices

US crude rose 3% to $108.92 a barrel, while Brent climbed 2.8% to $112.32 a barrel. 

US crude lost 3.3% on Thursday, while Brent shed 5.5%, the second loss in a row on active profit-taking off two-week highs. 

Prices were pressured as the Ecuadorian government reached a deal with the rioting  opposition to end two weeks of protests and resume oil production., 

Oil prices are up 0.75% so far this week on track for the first weekly profit in a month. 

Global Supplies 

Concerns about global supply shortages led to a surge in prices as several countries struggle to produce oil. 

Libyan Output

Libyan authorities said they might close some oil exporting ports amid overwhelming conditions that are preventing proper operations.

Macron

French President Emanuel Macron told his US counterpart Joe Biden that the communicated with UAE government and Saudi governments, and both are at their upper limits of production.

US administration has been trying to pressure UAE and Saudi Arabia to increase output to offset some of the Russian shortages.

OPEC +

The OPEC + organization agreed to maintain current production plans unchanged, with goals of hiking production by 648 thousand bpd in July and August. 

US Stocks 

Official US data showed US commercial stocks fell by 2.8 million barrels on Wednesday in the week ending June 24, the second decrease in a row, while analysts expected a 0.9 million barrels drop. 

Now total stocks are down to 415.5 million barrels, the lowest since the week ending May 17.