Oil advances with equities as traders wait for clues from EIA
Crude has rebounded from a 15-month low hit in March
Dubai: Oil rose as traders looked ahead to a slew of market data that’ll shed light on supply-demand trends after OPEC+ cut production.
West Texas Intermediate advanced above $80 a barrel, gaining along with equities while the dollar fell. In the US, the Energy Information Administration unveils its short-term outlook later Tuesday, while OPEC and the International Energy Agency are also scheduled to issue monthly reports this week.
Crude has rebounded from a 15-month low hit in March as a concerns over a banking crisis faded, US stockpiles fell, and the Organization of Petroleum Exporting Countries and its allies cut output. In addition, there have been disruptions to supply, including a halt to pipeline flows from Iraq to Turkey.
Oil’s gain “is an expression of cautious risk resumption,” said Vishnu Varathan, Asia head of economics and strategy at Mizuho Bank Ltd. “OPEC+ has now upped the ante and lifted the thresholds for oil to react to recession risks.”
Key metrics suggest tighter conditions. Brent’s December-December spread “- the difference between futures for the final month this year and in 2024 “- widened to $5.51 a barrel. That compares with $2.53 a barrel three weeks ago.