Investing.com – Crude oil prices rose on Friday, capping a third consecutive weekly gain, as the combination of a broadly weaker U.S. dollar and renewed concerns over turmoil in the Middle East boosted prices.
On the New York Mercantile Exchange, light sweet crude futures for delivery in July traded at USD100.74 a barrel by close of trade on Friday, gaining 1.1% on the week.
The U.S. dollar came under pressure on Friday as expectations grew that the Federal Reserve would keep its loose monetary policy following a flurry of weak economic data.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, slumped 1.6% on the week to settle at 74.69 on Friday, the lowest level since May 10.
Dollar-denominated oil futures contracts tend to rise when the dollar falls, as this makes oil cheaper for buyers in other currencies.
Elsewhere, markets focused on renewed worries over unrest in the Middle East and North Africa. Violence escalated in Yemen, threatening to tip the country into civil war, while world leaders reiterated calls for the departure of embattled Libyan leader Muammar Gaddafi.
JP Morgan Chase said in a report Friday that ousting Gaddafi could bring about a “swift restoration” of some Libyan oil exports, but “much more significant future risks to oil supply remain.”
“In particular, we continue to watch the attempted clipping of Iran’s president Mahmoud Ahmadinejad’s political power base with interest,” the Wall Street bank said.
The Wall Street Journal reported on Friday that Saudi Arabia was rallying Muslim nations across the Middle East and Asia to join an informal Arab alliance against Iran. That has some U.S. officials worried about the sectarian tensions gripping the Arab world, the Journal said.
Saudi Arabia is the world’s largest crude oil producer, while Iran is the fourth largest and the second biggest exporter.
Meanwhile, expectations of increased gasoline demand in the U.S. also supported prices, as buyers positioned themselves ahead of the Memorial Day weekend, the official start of the U.S. summer driving season.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for July delivery traded at USD114.97 a barrel by close of trade on Friday. The Brent contract jumped 2.4% on the week and was up USD14.23 on its U.S. counterpart.
Earlier in the week, influential Wall Street bank Goldman Sachs raised its 2011 Brent forecast to USD130 a barrel, compared to a previous estimate of USD105 a barrel, citing firm demand from emerging economies, which will lead to tighter inventories in the second half of the year.
On the New York Mercantile Exchange, light sweet crude futures for delivery in July traded at USD100.74 a barrel by close of trade on Friday, gaining 1.1% on the week.
The U.S. dollar came under pressure on Friday as expectations grew that the Federal Reserve would keep its loose monetary policy following a flurry of weak economic data.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, slumped 1.6% on the week to settle at 74.69 on Friday, the lowest level since May 10.
Dollar-denominated oil futures contracts tend to rise when the dollar falls, as this makes oil cheaper for buyers in other currencies.
Elsewhere, markets focused on renewed worries over unrest in the Middle East and North Africa. Violence escalated in Yemen, threatening to tip the country into civil war, while world leaders reiterated calls for the departure of embattled Libyan leader Muammar Gaddafi.
JP Morgan Chase said in a report Friday that ousting Gaddafi could bring about a “swift restoration” of some Libyan oil exports, but “much more significant future risks to oil supply remain.”
“In particular, we continue to watch the attempted clipping of Iran’s president Mahmoud Ahmadinejad’s political power base with interest,” the Wall Street bank said.
The Wall Street Journal reported on Friday that Saudi Arabia was rallying Muslim nations across the Middle East and Asia to join an informal Arab alliance against Iran. That has some U.S. officials worried about the sectarian tensions gripping the Arab world, the Journal said.
Saudi Arabia is the world’s largest crude oil producer, while Iran is the fourth largest and the second biggest exporter.
Meanwhile, expectations of increased gasoline demand in the U.S. also supported prices, as buyers positioned themselves ahead of the Memorial Day weekend, the official start of the U.S. summer driving season.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for July delivery traded at USD114.97 a barrel by close of trade on Friday. The Brent contract jumped 2.4% on the week and was up USD14.23 on its U.S. counterpart.
Earlier in the week, influential Wall Street bank Goldman Sachs raised its 2011 Brent forecast to USD130 a barrel, compared to a previous estimate of USD105 a barrel, citing firm demand from emerging economies, which will lead to tighter inventories in the second half of the year.