Oil Heads for Weekly Advance as Spreads Signal Market Strength

Economy

1-03-2024, 09:40

+A -A

INA-source
Oil was on track for a weekly gain as market gauges continued to show signs of strength, with OPEC+ set to decide early this month whether to extend supply cuts into the next quarter.

West Texas Intermediate futures held above $78 a barrel, and were up over 2% for the week. Brent closed below $82 on Thursday. Prompt spreads for both benchmarks expanded in a bullish backwardation structure last month, an indication of tightening physical crude markets.
Oil capped a second monthly increase in February, although prices remain in a tight trading range. Geopolitical tensions including the Israel-Hamas war have helped spur some of the gains, while a tightening of US sanctions has dented India's crude trade with Russia.

Source- Ewfpro