West Texas Intermediate (WTI) crude oil prices closed higher at $82.82 yesterday (Thursday) and the market was closed on Friday for Good Friday.
The rise in crude oil prices is due to the possibility that the Organization of the Petroleum Exporting Countries and its ally Russia (OPEC+) want to maintain their production cuts.
Investors are now closely monitoring the meeting of the OPEC Joint Monitoring Committee of Ministers next week.
Although geopolitical risks are rising and could raise concerns about possible supply disruptions, OPEC+ is unlikely to change their oil production policy until a full ministerial meeting scheduled for June.
Furthermore, crude oil prices continue to be supported by Ukraine's ongoing attacks on Russia's energy infrastructure. This conflict will contribute to the tightening sentiment of global crude supply.
The Energy Information Administration (EIA) report showed a weekly increase in crude oil inventories. Last week, the EIA crude oil stockpile change reported an increase of 3.165 million barrels and that was against the previous expectation of a decrease of 1.952 million barrels.
In addition, the collapse of the Francis Scott Key Bridge last Tuesday will affect fuel suppliers in Baltimore with truck delays and other logistical challenges.
The collapse resulted in parts of the bridge falling into the shipping lane at the mouth of Baltimore Harbor leading to the closure of the city's port.
Meanwhile, the US Gross Domestic Product (GDP) grew by 3.4% in the fourth quarter of 2023. It exceeded market expectations which predicted a 3.2%.
The US Gross Domestic Product Price Index remained stable with a 1.7% increase in line with fourth quarter projections.
For now, investors are looking forward to the latest US Personal Consumption Expenditure (PCE) Price Index report and the Fed's preferred inflation measure due out at 8.30pm tonight. These data are to get a clearer view of the trajectory of interest rates.
