Oil price news: Oil rises near upper end of range on signs of tighter market
BNN Bloomberg
Oil rose to near the top of its recent trading range after a smaller-than-expected increase in US crude stockpiles added to signs of a tightening physical market.
West Texas Intermediate ended the session above US$78 a barrel after a government report said US crude inventories climbed by 3.51 million barrels, less than what many market watchers expected. Run rates at refineries finally ended a streak of declines for this year and may increase in the coming weeks as facilities restart after a spate of outages and maintenance, boosting crude demand.
Timespreads are signaling a more robust market, and gauges of crude supply balances at the delivery point for U.S. futures at Cushing, Oklahoma, have also soared. Both measures are in a bullish pattern indicative of tight near-term supplies.
“The numbers were not a game-changer for the broader narrative, but did show signs of green shoots and may quell some fears of demand collapse,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth.
