NEW YORK – Oil prices mostly rose over 2 percent after energy firms posted positive earnings and US data showed crude output was declining while fuel demand was growing.
On its last day as the front-month, Brent futures for June delivery rose $1.17, or 1.5 percent, to settle at $79.54 a barrel, while the more actively traded July contract jumped 2.7 percent to settle at $80.33.
US West Texas Intermediate (WTI) crude rose $2.02, or 2.7 percent, to settle at $76.78.
Despite the daily gains, Brent and WTI both declined for a second week in a row, with Brent posting a fourth straight monthly decline as disappointing US economic data and uncertainty over interest rates weighed on the demand outlook.
“The market was down much of the week on worries about a looming economic recession and an expansion of the banking crisis with First Republic,” said Phil Flynn, an analyst at Price Futures Group.
“But, today there were headlines showing there may be a solution to the First Republic problem, and there was data pointing to a rise in oil demand and a decline in output,” Flynn said.
US officials are coordinating urgent talks to rescue First Republic Bank, as private-sector efforts led by the bank’s advisers have yet to reach a deal, according to three sources familiar with the situation.
The US Federal Deposit Insurance Corp (FDIC), the Treasury Department and the Federal Reserve are among government bodies that have started to orchestrate meetings with financial companies about a solution for First Republic, the sources said. – Reuters
