London, (Business News Report)|| Oil prices ended the month of April on a positive note, with Brent crude up 1.3%, and West Texas Intermediate up 4.4%.
Oil prices were in volatile trading Friday, and fell slightly to limit monthly gains at the close.
On Friday, oil prices were affected by US heating oil contracts, which fell by more than 20% at some point in today’s trading, which is witnessing their expiration.
The nearest-maturity US heating oil contract, an indicator of diesel prices, had risen to an all-time high of $5.8595 a gallon before falling to $4.4067 a gallon.
Diesel futures rose as investors worried about tight supplies globally in the wake of the Russian invasion of Ukraine.
“The fireworks were all in the expiring diesel contract,” said Andrew Lipow of Lipow Oil Associates in Houston. “Today’s expiry is especially volatile and may not be reflective of actual tightness.”
The most active futures contracts for Brent crude for the second month, the nearest maturity, fell 12 cents, to settle at 107.14 dollars a barrel.
The month-to-month contract, which expires at $1.75, rose to end the session at $109.34 a barrel.
According to Reuters, US West Texas Intermediate crude, which does not expire today, fell 67 cents to close at $104.69 a barrel.
Both Brent crude and West Texas Intermediate achieved weekly gains, and recorded their fifth gains in a row.
A monthly report from the US Energy Information Administration on Friday said that US oil production fell in February to the lowest level since September 2021.
The report showed that oil production fell to 11.31 million barrels per day in February from 11.36 million barrels per day in the previous month.
Production in Texas fell to 4.83 million barrels per day, the lowest level since July 2021, while production in New Mexico rose to nearly 1.41 million barrels per day, the highest level since November 2021.
The administration said that demand for US crude and petroleum products rose in February to the highest level since December.
It also added that demand rose to 20.4 million barrels per day.
It said gasoline demand rose to 8.6 million barrels per day, the highest level since December.