Oil prices rose on Friday and were on track for monthly gains, benefiting from news that U.S. oil output cuts in May were the largest on record.
U.S. crude oil production plummeted in May, falling a record 2 million barrels per day to 10 million bpd, the U.S. Energy Information Administration said in a monthly report on Friday.
Investors typically use dollar-denominated commodities as safe havens when the currency weakens.
“Global stimulus and a weak dollar will continue to support oil prices, as historically oil is seen as a hedge against inflation,” said Keshav Lohiya, chief executive officer of consultancy Oilytics.
Bjornar Tonhaugen, head of oil markets at Oslo-based Rystad Energy, said traders will next week closely monitor oil output increases by the Organization of the Petroleum Exporting Countries (OPEC) and its allies.
The group, known as OPEC+, collectively plans to increase production from Saturday, adding about 1.5 million barrels per day to global supply, after slashing output in the wake of the pandemic.
Junior Trader Daniel Dimitrov