PT Solid Gold Berjangka | Oil Steady After Blistering Rally Ran Into Technical Resistance
Oil was steady near $92 a barrel after dropping the most in eight weeks in the previous session on technical resistance and speculation the Saudis will start restoring output if prices get too high.
West Texas Intermediate was subdued after a rollercoaster session on Thursday in which it rose above $95 a barrel at one point but closed down 2.1%. Futures are still up for the week and month, and are headed for their biggest quarterly gain since March 2022 following output cuts by Saudi Arabia and Russia.
The pullback came after WTI’s 14-day relative strength index rose past a threshold signaling it may have been overbought. Rapidian Energy Group, meanwhile, said the kingdom may be getting close to reviving output rather than risk a further surge in prices that could damp demand.
Until that happens, there appear to be few obstacles preventing crude’s march toward $100 a barrel. OPEC is forecasting a supply deficit at 3 million barrels a day next quarter and stockpiles at the largest US storage hub have dwindled to near-critical levels. The supply shortages are reverberating through markets from Asia to the Middle East and Europe, while demand is proving resilient.
Prompt timespreads for WTI and global benchmark Brent are deep in bullish backwardated structures. Options trading is also showing concerns about bigger price swings.
WTI for November was steady at $91.72 a barrel at 8:27 a.m. in Singapore.
It’s up 1.9% this week and 30% this quarter.
Brent for November, which expires Friday, declined 0.2% to $95.17 after falling 1.2% on Thursday.
The more-active December contract was little changed at $93.11.
Source : Bloomberg