Oil rose for a fourth straight week, supported by signs of a tightening global market prompting the International Energy Agency to warn of higher prices.
West Texas Intermediate settled above $82 a barrel, posting its longest streak of weekly gains since June. Crude is near five-month highs after OPEC+ surprised the market with plans to cut production by more than 1 million barrels a day. Declining US stockpiles, weaker flows from Russia and pipeline supply disruptions from Iraqi Kurdistan have added to the gains.
Markets are digesting a week of mixed crude supply and demand projections. The latest OPEC+ cuts threaten to raise oil prices for consumers already facing high inflation, the IEA said in its monthly projections on Friday. The cartel had predicted a day earlier that the markets would be deeply underserved. Instead, the US Energy Information Administration forecast supplies to outpace demand in both 2023 and 2024.
Demand from the world’s biggest crude importer is also supporting prices. Recent data show China imported the most oil in three years last month, supported by record Russian flows. On Friday, People’s Bank of China Governor Yi Gang said the country’s economy is expected to grow around 5% this year.
Key technical measures also point to a narrower market. WTI’s quick spread, the difference between its two closest contracts, was 9 cents a barrel in retreat. The bullish pattern is a marked reversal from when the contango was trading at 16 cents a month ago.
Prices:
- WTI for May delivery rose 36 cents to settle at $82.52 a barrel in New York.
- Earlier this week, the US benchmark touched $83.53 a barrel, the highest intraday price since mid-November.
- Brent for June settlement advanced 22 cents to settle at $86.31 a barrel.
