Magnifying previous session’s gains, crude oil futures settled notably higher on Friday taking positive lead from the passage of the debt ceiling bill and amid reports about a possible cut in production from OPEC and allies. The Organization of the Petroleum Exporting Countries and allies, collectively known as OPEC+, is scheduled to meet on June 04. Further, cheerful non-farm payroll data for the month of May also contributed to the increase in oil prices. Meanwhile, data from Baker Hughes showed the number of total active drilling rigs in the United States fell by 15 this week. Over the last four weeks, the rig count has dropped by 52, the largest 4-week dropoff in activity since June 2020. The total rig count fell to 696 this week, which is 31 rigs below this time last year.
Benchmark crude oil futures for July delivery rose $1.64 or about 2.3 percent to settle at $71.74 a barrel on the New York Mercantile Exchange. Brent crude for August delivery surged $1.80 or 2.41 percent to settle at $76.08 a barrel on London's Intercontinental Exchange.