Friday, 5 February 2021

Brent Oil Within Sight of $60 on Expectations for Tight Supply - Bloomberg

Brent Oil Within Sight of $60 on Expectations for Tight Supply - Bloomberg

Oil rose toward $60 a barrel on expectations OPEC+ is committed to restraining global supplies even as the demand outlook improves.

Futures in London climbed for a sixth day as they close in on a level last reached in February 2020 before Covid-19 upended global energy markets. OPEC+ has pledged to keep draining a virus-driven surplus as inventories from China to the U.S. shrink. Saudi Arabia defied expectations for a reduction and left oil prices unchanged for Asia in another sign of market strength.

The most active Brent contract is up almost 8% this week, aided by a rally in stocks as earnings rebound and central banks remain supportive. Technical indicators suggest oil is due for a pullback, though. Relative strength indexes for Brent and West Texas Intermediate are at overbought levels.



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