Oil set for weekly gain as tight markets offset slowdown fears
BNN Bloomberg
Oil headed for a weekly increase, with U.S. crude climbing back toward US$100 a barrel on signs of tight physical supply. Still, futures are set to end the month lower amid continued recessionary fears.
West Texas Intermediate futures rose 3.6 per cent, bringing this week’s gain to about 5.5 per cent. Prices are more likely to rise than fall as tight supply outweighs any risks to demand, Shell Plc Chief Executive Officer Ben van Beurden said on Thursday after the company posted record profit in the second quarter.
Futures are nevertheless poised for the first back-to-back monthly decline since 2020 as fears of an economic slowdown fueled bearish sentiment across markets. The US economy shrank for a second quarter as rampant inflation undercut consumer spending. Citigroup Inc. says there are signs the oil market is moderating.
