Oil price news: Oil edges up as tight supplies vie with broader risk-off mood
BNN Bloomberg
Oil swung between gains and losses as financial markets remained under pressure, leaving prices stuck near the upper end of a narrow band they’ve traded in so far this year.
Oil rose as traders weighed tightening physical supplies against financial markets that have remained under pressure.
Global benchmark Brent rose to settle above US$83 a barrel while West Texas Intermediate climbed near $78, near the upper ends of narrow bands the prices have traded in so far this year. The potential of restrained economic growth due to elevated interest rates has pushed traders away from risk assets, including crude, a commodity often correlated to economic demand.
Still, physical markets continue to show signs of strength amid refined-product shortages. Brent’s prompt spread — the difference between its two nearest contracts — strengthened to 95 cents in backwardation, hovering at three month highs, excluding volatile contract-expiration dates.
