Oil prices headed toward weekly gains, as market indicators continued to show signs of strength, while OPEC+ is expected to decide early this month whether to extend production cuts into the next quarter.
Brent crude futures rose above $82 a barrel, up 0.8% during the week. West Texas Intermediate crude rose to about $79.
The price differences between the two nearest oil contracts widened in the case of “backorder,” which indicates a rise in prices, with spot prices remaining higher than longer-term contracts, which is an indication of market tightness, as the difference between the bid and ask prices is limited.
Oil posted a second monthly increase in February, although prices remain in a tight trading range. Geopolitical tensions, including the war between Israel and Hamas, helped spur some gains, but rising non-OPEC supply and ongoing concerns about Chinese demand prevented futures from rising.
Oil demand in the United States is at its highest levels in 4 years
The OPEC+ alliance is expected to extend current supply cuts into the next quarter in an attempt to avoid a global glut and support prices, according to a recent Bloomberg survey. The coalition imposed production restrictions amounting to about two million barrels per day.
At the same time, expectations that the United States will keep interest rates steady for longer were strengthened when the Federal Reserve’s favored inflation index rose at the fastest pace in almost a year. This is likely to act as a headwind to broader energy demand, hurting commodities overall including crude oil.
2024-03-01 03:07:04
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