Oil rose in London to above $43 a barrel as Saudi Arabia hiked its official selling prices, and as global equity markets climbed. Brent gained 1.3% in London to near the highest level since March. Saudi Aramco increased its crude prices to Asia as demand recovers. Libya’s oil exports are expected to fall this month as forces opposed to the government continue to block shipments. Global equity markets are near the highest in a month, giving crude another boost.

Brent nears its highest level since March

Still, the surge in coronavirus infections around the world, including in the U.S., makes the recovery in the oil market fragile. For now though, optimism over strong economic data, returning energy demand as countries ease lockdown measures, and OPEC and its allies’ bumper output cuts are driving crude higher.

“Despite the rapid increase in new global cases of Covid-19, financial and commodities markets appear immune to the news,” said Eugen Weinberg, head of commodities research at Commerzbank.

PRICES
  • Brent for September rose 55 cents to $43.35 a barrel as of 10:10 a.m. London time
    • Net bullish Brent positions climbed to a 17-week high
  • West Texas Intermediate for August gained 9 cents from Thursday’s close to $40.74
    • There was no settlement Friday due to the Independence Day holiday in the U.S.