Crude oil prices in the United States showed a significant rise on Friday as the benchmark U.S. crude oil for June delivery increased by 72 cents, reaching $79.95 per barrel. This surge follows an upward trend that has been observed recently in the market. Brent crude for July delivery also experienced an increase of 71 cents, settling at a price of $83.98 per barrel. The rise in oil prices is attributed to a combination of factors such as high demand, lower production levels, and geopolitical tensions.
Alongside the growth in crude oil prices, wholesale gasoline for June delivery also saw an increase of 3 cents, raising its price to $2.57 per gallon. The higher cost of gasoline is primarily due to the increased demand for transportation fuel, as well as the global energy crisis that has led to a surge in oil prices. June heating oil experienced a more significant rise, with prices increasing by 4 cents and settling at $2.49 per gallon. This growth can be attributed to an expected higher demand for heating fuel during the winter season due to a colder weather forecast.
June natural gas also recorded an increase in its price, rising by 11.3 cents and reaching $2.61 per 1,000 cubic feet. This hike in natural gas prices is primarily driven by high demand from power companies as they turn to natural gas for electricity generation amidst the current energy crisis. The increased use of natural gas is expected to continue in the coming months due to rising concerns over climate change and air pollution levels.
In the precious metals market, gold for June delivery experienced a notable rise of $31.90, bringing its price up to $2,417.40 per ounce. This increase is attributed to investors seeking safe-haven assets amidst global economic uncertainty and inflationary pressures. Silver for July delivery also exhibited an upward trend, with prices increasing by $1.38 and reaching $31.26 per ounce. The rise in silver prices can be linked to the increased industrial demand for the metal, as well as its use as a safe-haven asset during times of economic uncertainty.
Finally, July copper recorded an increase of 17 cents, raising its price to $5.05 per pound. This growth is primarily driven by rising demand from the construction and manufacturing sectors, as well as increased production costs due to supply chain disruptions and labor shortages. The higher cost of copper is expected to continue in the coming months due to strong economic fundamentals and a robust global economy.
In conclusion, crude oil prices continued their upward trajectory on Friday, with U.S. benchmark crude oil for June delivery rising by 72 cents to $79.95 per barrel. This surge is attributed to high demand, lower production levels, and geopolitical tensions. Wholesale gasoline, heating oil, natural gas, gold, silver, and copper all experienced increases in their respective prices due to a combination of factors such as increased industrial demand, safe-haven seeking behavior, and supply chain disruptions. As the global energy crisis continues to escalate, it is likely that these commodity prices will remain elevated for the foreseeable future.