TOKYO/AMMAN – Crude oil prices rose yesterday, Friday, by 1.5% for Brent futures and 2.7% for current contracts as well as for West Texas Intermediate (WTI) crude, due to rising demand in the United States (US), after dropping 48 cents on the barrel last Thursday, each.
The increase in prices came after energy firms posted positive earnings on Friday, in light of US data indicating a decline in crude output, according to Reuters.
Brent futures for June delivery rose USD 1.17 (JOD 0.83) on the barrel, to settle at USD 79.54 (JOD 56.45), while the more actively traded July contracts jumped to USD 80.33 (JOD 57.11).
Meanwhile, West Texas Intermediate (WTI) crude rose USD 2.02 (JOD 1.43), or 2.7%, to settle at $76.78 (JOD 54.58).
Generally, when interest rates are increased, oil prices rise as well, and gold prices go down, and vice versa.
However, in a paradoxical response to the anticipated rise in interest rates, the prices of both gold and oil took a dip last Thursday, as fears grew over a possible decline in demand for oil, due to overestimation of the US dollar and increasing costs of trade for importers.
Higher interest rates could further boost oil prices, which benefits oil-exporting countries within the GCC, as the US dollar still stands as the primary denomination currency used in the international oil market.
