Oil posts biggest weekly gain since March on supply fears
BNN Bloomberg
Oil posted its biggest weekly gain since early March as an increasingly negative supply outlook offset nagging macroeconomic concerns.
West Texas Intermediate futures settled close to US$93 a barrel on Friday after rallying more than 16 per cent for the week. Time spreads had been signaling supply scarcity even before the OPEC+ alliance announced its biggest output cut since the start of the pandemic. The move accelerated oil’s rally despite crashing equities, a rising dollar, and a U.S. jobs report that reignited concerns about rising interest rates.
“Supply fears seem to be the driving force behind the market action this week, putting demand fears back on the back burner for petroleum prices, even though they remain front and center in equity markets,” analysts at wholesale-fuel distributor TACenergy wrote in a note to clients.
