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Oil Prices Soar Amidst Plans by OPEC+ to Increase Output

Oil prices increased on Friday, recovering from a 3-week low in the prior session, amid hopes for more stimulus in the US after official data showed the economy collapsed at a 32.9% annualized rate in Q2, the deepest fall in output since the government started keeping records in 1947.

Investors also cheered news that factory activity in China rose for the fifth month in a row. Adding the momentum, Britain’s AstraZeneca reported that good data was coming in so far on its vaccine for COVID-19, already in large-scale human trials.

On the supply side, OPEC+ plans to increase output from Saturday, adding about 1.5 million barrels per day to global supply. At around 02:30 AM GMT, WTI crude rose 0.5% to $40.12 a barrel, while Brent crude gained 0.9% to $43.31 a barrel.

For the week, the US crude is heading for a third consecutive month of gains, while the global benchmark is on track for a fourth month of rise, amid a recovery in contracts that saw a plunge in April.

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