Oil poised for biggest weekly rally since March on OPEC+ move

Oil headed for the biggest weekly gain since early March as OPEC+ put the market on course for further tightening ahead of winter.

While West Texas Intermediate was near US$89 a barrel on Friday, futures are up almost 12 per cent for the week. Time spreads were signaling supply scarcity even before the producer alliance announced its biggest output cut since the start of the pandemic, a move that’s set to squeeze the market even more.

The tightening outlook halted the slide in oil prices, which have been weighed down by concerns over a global economic slowdown and aggressive rate hikes by central banks. Russia also reiterated this week that it won’t sell oil to countries that adopt a U.S.-led price cap, adding to supply uncertainty.