News

WTI crude oil settles at $82.88 in new cycle high to cap eighth-straight week of gains

WTI crude oil up 97-cents to $82.28

What a run it’s been for the crude oil bulls in basically a straight line to $82 from $62 on August 23.

This is the eighth straight week of gains in crude and the highest close since 2014. Today is contract expiration and there’s moderate backwardation through the contract table, out to $$74 at this time next year.

Where the backwardation is more pronounced is in brent, where it’s risen to an $8 premium for the current contract compared to December futures.

Laymen see contract backwardation is bearish because prices are lower out the curve but it also says that someone out there can’t wait three months to get oil and is willing to pay $8 for someone to pull it out of storage and deliver it now. That’s a bullish sign for current demand and price action in oil lately underscores that.

On the fundamental side, the US inventory report this week was bearish but crude rallied right through it as well. I don’t see any immediate threat of OPEC+. China is a mystery with the only news today that it’s curbed independent refinery quotas for next year, but that supply is expected to go to mega refineries instead.

Invest in yourself. See our forex education hub.

Articles You May Like

Gold rate today: Yellow metal trades firm; silver regains Rs 62,000 on MCX
Krona should begin to slowly appreciate over the coming quarters – Commerzbank
Best XAUUSD Trading Strategy | GOLD VIEW | Fx Gold Prediction | Forex Sekho Live Trading Signal
The USD is the strongest and the JPY is the weakest as the NA session begins
US stocks head into the last half-hour of trading for the week

Leave a Reply

Your email address will not be published. Required fields are marked *