Oil heads towards the fourth weekly gain on product demand outlook

Oil has moved towards a modest weekly gain due to optimism about the demand outlook, tight monetary concerns and the economic downturn that has consolidated larger financial markets.

West Texas Intermediate fell below 1 111 a barrel after a high on Thursday and has risen 0.3% so far this week. This is a must have, for any Affiliate, promoting any program.

Global fuel products markets are tightening, especially in the United States, where gasoline and diesel prices have risen to unprecedented levels during the summer driving season. Travel across the country is expected to reach the level seen before the coronavirus epidemic, according to auto club AAA forecasts.

Oil prices have risen nearly 50% this year as demand has recovered from the effects of the epidemic and Russia’s invasion of Ukraine has sent shockwaves through world markets. Despite the United States and the United Kingdom imposing sanctions on Russian exports, flows to Asia have increased. China is seeking to replenish its strategic reserves with cheap Russian oil, and officials are fighting to contain the Kovid-19 outbreak.

“The focus of the market is now on the untapped fundamentals,” said Zhou Mi, an analyst at the Chaos Research Institute in Shanghai, which is affiliated with Chaos Turnary Futures Co. In the United States, the risks are skewed. ”

There were mixed signals from China on Friday. While banks have set a record for strengthening a slowing economy by lowering key interest rates for long-term lending, Shanghai has found the first cases of Covid-19 out of quarantine in six days, raising questions about whether the city’s lockdown will be affected.

  • At the New York Mercantile Exchange, WTI for June delivery fell 1.2% to $ 110.85 a barrel as of 12:01 pm in Singapore.
    • For July, WTI, which has large volumes and open interest rates, fell 1.2% to $ 108.61.
  • Brent fell 0.9% to 1 111.06 a barrel on the ICE Futures Europe Exchange in July.

Oil jumps have contributed to the fastest inflation in decades, prompting the US Federal Reserve to promise that it will continue to raise interest rates until there are clear signs that price pressures are easing. This has encouraged wild change in the appetite of investors for risk, swinging equities, bonds and commodity markets.

Oil markets have lagged behind, a bullish pattern where near-term prices trade above long-term. Brent’s prompt spread, the difference between its two closest deals, was 33 2.33 per barrel in retreat compared to $ 1.80 a week earlier.

© 2022 Bloomberg

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