PT Solid Gold Berjangka | Oil Steadies After Hitting Highest Since November on OPEC+ Cuts
Oil steadied after hitting the highest level since November on expectations that supply cuts by OPEC+ leaders will tighten the market.
West Texas Intermediate was little changed above $85 a barrel after an initial surge as the week’s trading kicked off. Underlying metrics, including WTI’s prompt spread, have widened markedly in recent days, suggesting tighter conditions after benchmark US futures jumped by more than 7% last week.
Russia has announced that it will extend export curbs, with more details of the reductions to be released in the coming days. Saudi Arabia — which along with Moscow sets the tone at the OPEC+ alliance — is widely expected by traders to follow suit by pushing its voluntary curbs into October.
Oil’s fortunes have improved this quarter following a lackluster first half as the supply reductions show signs of rebalancing the market, with US stockpiles slumping. Additional support for crude has come from speculation that the US Federal Reserve may be close to finishing its hiking campaign, as well as signs China’s efforts to bolster growth could be starting to gain traction.
WTI for October delivery rose 0.1% to $85.64 a barrel at 11:36 a.m. in Singapore.
Earlier, prices gained to as much as $86.09 a barrel, the highest intraday level since November.
A US holiday on Monday may thin trading volumes.
Brent for November settlement was almost unchanged at $88.58 a barrel.
Source : Bloomberg
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