Oil to Cap Quarterly Rally as Russia Fuel Curbs Add to OPEC Cuts - Yahoo Finance
Oil to Cap Quarterly Rally as Russia Fuel Curbs Add to OPEC Cuts
(Bloomberg) -- Oil steadied around $91 a barrel, set to cap the largest quarterly rally since the initial jolt from the war in Ukraine, as lower Russian fuel exports threaten to further tighten a market wrestling with OPEC+ production cuts.
Most Read from Bloomberg
Pakistan Rupee Set to Become Top Performing Currency Globally
Europe’s Richest Royal Family Builds $300 Billion Finance Empire
Top Chinese Scientist Claims India Moon Landing Nowhere Near South Pole
UAW Aims For At Least 30% Wage Bump to Woo New Members
Biden Impeachment Hearing Heavy on Politics, Light on Substance
Industry data released Friday show Russia is planning almost no diesel exports next month as the country bans shipments overseas to reduce domestic prices. The move sent European diesel futures rallying back above the psychologically key level of $1,000 a ton.
US benchmark crude futures are headed for their biggest quarterly gain since the period ended in March 2022 on Saudi-led OPEC+ supply cuts and critically low stockpiles at the Cushing hub in the US. On Friday, West Texas Intermediate reversed its earlier gains and slipped to around $91, largely tracking swings in US equities.
Many of this week’s most significant market moves have come away from headline prices. Key timespreads have exploded higher as fears about the availability of US supplies boost crude prices globally. Meanwhile, gasoline’s premium over crude in the US has plunged in a potential sign that higher crude prices are starting to impinge on margins.
Even with traders casting a wary eye on the demand outlook, there is little to obstruct crude’s march toward $100 a barrel as OPEC forecasts a supply deficit at 3 million barrels a day next quarter.
“Oil for short-term delivery is being traded at a significant premium, which is an indication of tight supply,” Commerzbank AG analysts, including Barbara Lambrecht, said in a report. “At the same time, demand for oil is continuing to grow. This is tightening the oil market, as evidenced by declining inventories.”
China’s Golden Week holidays, which run through next Friday, are expected to boost consumption as more people fly domestically and on international routes.
To get Bloomberg’s Energy Daily newsletter into your inbox, click here.
Most Read from Bloomberg Businessweek
Huawei Takes Revenge as China Catches Up on Semiconductors
Google User Data Has Become a Favorite Police Shortcut
A $12 Million Request to Cover a Crypto Scam Sank a Bank CEO
Got Plastic With a No. 2 Recycling Symbol? Beware a Toxic Problem
Feeding the World Once Brought the US Untold Influence—No More
©2023 Bloomberg L.P.