Oil prices rose on Friday as supply concerns remained on the market.
On the New York Mercantile Exchange, the West Texas Intermediate for June delivery gained 4.36 US dollars, or 4.1 percent, to close at 110.49 dollars per barrel. London ICE Futures Exchange Brent crude for July delivery closed the day at $111.55 a barrel, a rise of $4.01, or 3.8%.
Despite Baker Hughes statistics revealing that the overall number of active drilling rigs in the United States increased by nine to 714 this week, the market rallied.
There were six more oil rigs in the United States this week, three more gas rigs, and two miscellaneous rigs this week, according to the statistics.
As the European Union (EU) attempted to garner support for an oil embargo against Russia, supply concerns loomed.
Russia’s crude oil will be phased out by the end of the year as part of the EU’s sixth sanctions package directed at Moscow, announced last week.
Because of their reliance on Russian energy, Hungary and other Eastern European countries have yet to approve the penalty package as it stands.
Traders were also concerned about the potential for a rise in demand.
According to the Organization of Petroleum Exporting Countries, geopolitical tensions and the COVID-19 epidemic have slashed its prediction for global oil demand growth in 2022.
The U.S. crude standard increased 0.7 percent this week, while Brent crude dropped 0.7 percent, according to the front-month contracts.