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  • WTI gains more than 5% on Friday as investors are pricing Saturday’s OPEC+ meeting.
  • Saudi Arabia’s energy minister says the outcome will be “hopefully successful.”
  • Number of active oil rigs in the US fell to 206.

Crude oil prices built on Thursday’s modest gains and rose sharply on Friday boosted by the upbeat market mood optimism surrounding Saturday’s OPEC+ meeting. The barrel of West Texas Intermediate (WTI) surged to its highest level since early March at $39.54 before going into a consolidation phase. As of writing, the WTI was up 5.4% on the day at $39.35.

Eyes on OPEC+ meeting

Earlier in the day, several news outlets reported that Russia and Saudi Arabia agreed on extending the current output cuts for at least one more month. Moreover, “the conditions right now warrant hopefully successful meetings,” Saudi Arabia’s energy minister Prince Abdulaziz bin Salman told Reuters on Friday.

Meanwhile, the data published by the US Bureau of Labor Statistics showed a surprising increase in Nonfarm Payrolls (NFP) in May and eased worries over energy demand outlook.

The Unemployment Rate in the US fell to 13.3% from 14.7% and the NFP rose by 2.5 million to beat analysts’ estimate for a decline of 8 million by a wide margin.

Finally, the Baker Hughes Energy Sevices’ weekly report revealed that the number of active oil rigs in the US fell to a record low of 206 and helped the WTI preserve its gains.

Technical levels to watch for