Crude oil and refined product futures contracts experienced significant gains to close out the week on Friday, with momentum building as the market awaits news on potential production cuts from OPEC and its allies.

Crude Contracts Surge

By 11 a.m. ET on Friday, crude contracts were on the rise, with the April contract for West Texas Intermediate crude up $2.12 to $80.38/bbl, and May prices climbing $1.96 to $79.41/bbl. Meanwhile, May Brent crude saw gains of $1.89 to reach $83.80/bbl in its first day as the front-month contract, with June prices also increasing by $1.73 to $82.91/bbl.

Refined Products Follow Suit

ULSD contracts led the charge in the refined products sector, as the April contract surged 5.99cts to 42.7098/gal, transitioning to the front-month position, while May prices rose 4.96cts to $2.6450/gal. RBOB futures saw upward movement as well, especially with the more expensive summer blend represented by the April contract gaining 4.51cts to hit $2.6261/gal, as May prices also increased by 4.37cts to $2.6148/gal.

Factors Driving Prices Up

The gains seen on Friday were largely driven by expectations of an extension of current production cuts by OPEC and its allies. Additionally, concerns about oil supply were heightened following an incident where Israeli soldiers fired on Palestinians at a food aid site, impacting hopes for a ceasefire agreement between Israel and Hamas.

Impact on Spot Markets

The significant movements in futures contracts are being mirrored in spot markets across the country, with some regions experiencing even larger price increases. Prompt Group 3 CBOB prices soared over 15cts/gal, while diesel prices rose more than 12cts/gal. New York Harbor CBOB prices also saw an increase exceeding 8cts/gal.

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