Oil held a fourth weekly gain on signs of a tightening global market as the International Energy Agency warned of higher prices ahead.
(Bloomberg) — Oil held a fourth weekly gain on signs of a tightening global market as the International Energy Agency warned of higher prices ahead.
West Texas Intermediate futures traded above $82 a barrel after posting the longest run of weekly gains since June. A surprise production cut by OPEC+ will tighten the market more than previously expected and lead to further price increases, inflicting more pain on consumers, the IEA said on Friday.
Oil has rebounded after a banking crisis that rippled across markets drove futures to a 15-month low in mid-March. Shrinking crude stockpiles at the key US storage hub at Cushing and interruptions to supplies from Iraqi Kurdistan have added to the tightening in global markets.
Investors are also watching Russian energy exports, with the nation’s flows holding up despite a slew of Western sanctions. The country has slightly raised oil-processing rates in April, a sign of robust demand for its refined products.
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