Oil Hits Highest in More Than a Year With Global Supply Draining
Bloomberg 2/25/2021 Andres Guerra Luz
(Bloomberg) Oil climbed to the highest in more than a year amid optimism of swiftly depleting global oil inventories.
Futures in New York closed 0.5% higher on Thursday. The oil futures curve continues to signal a tighter market. U.S. crude inventories are near the lowest levels in about a year, while exports of five key crudes in the North Sea fields are seen slumping in April. As a result, crude timespreads are strengthening in a bullish structure known as backwardation.
“Looking forward in the market, we’re seeing a significant backwardation, which signals that there is an anticipation of an easing of virus restrictions coming,” said Gary Cunningham, director at Stamford, Connecticut-based Tradition Energy. “The market is looking toward more normal inventories heading into the summer, if we don’t see a flooding of markets.”
Oil extended gains after closing at the highest level in more than a year as a slump in U.S. crude production following the cold blast and shrinking Europe.
Oil Fluctuates Near One-Year High With Global Supply Tightening msn.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from msn.com Daily Mail and Mail on Sunday newspapers.
Oil hits highest in more than a year with global supply draining
Elizabeth Low, Bloomberg News VIDEO SIGN OUT
Oil climbed to the highest in more than a year amid optimism of swiftly depleting global oil inventories.
Futures in New York closed 0.5 per cent higher on Thursday. The oil futures curve continues to signal a tighter market. U.S. crude inventories are near the lowest levels in about a year, while exports of five key crudes in the North Sea fields are seen slumping in April. As a result, crude timespreads are strengthening in a bullish structure known as backwardation.
Oil hits highest in more than a year with global supply draining
Elizabeth Low, Bloomberg News VIDEO SIGN OUT
Oil climbed to the highest in more than a year amid optimism of swiftly depleting global oil inventories.
Futures in New York closed 0.5 per cent higher on Thursday. The oil futures curve continues to signal a tighter market. U.S. crude inventories are near the lowest levels in about a year, while exports of five key crudes in the North Sea fields are seen slumping in April. As a result, crude timespreads are strengthening in a bullish structure known as backwardation.