Oil set for third weekly advance as market tightens on outages
BNN Bloomberg
Oil was poised for a third weekly gain as demand remained resilient while supplies are frayed across the OPEC+ coalition and beyond.
Oil was poised for a third weekly gain as demand remained resilient while supplies are frayed across the OPEC+ coalition and beyond.
Futures in New York fluctuated to trade near US$80 a barrel on Friday, bringing this week’s increase to about 6 per cent. Kazakhstan’s biggest oil producer has altered output at the giant Tengiz field following protests in the country, while Libyan production has also been crimped. The oil futures have firmed into a bullish backwardation structure, signaling growing supply tightness.
“The oil market remains very tight and seems like it will go higher,” said Ed Moya, Oanda’s senior market analyst for the Americas. “But energy traders are concerned curbs across Europe and Asia could threaten the short-term demand outlook.”
