Oil Holds Onto Gains as Prompt Spread Strengthens

by Bloomberg | Julia Fanzeres and Alex Longley
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas

Oil held steady after the biggest daily gain in a month as US crude’s prompt spread strengthened and stockpiles logged their third consecutive weekly decline.

West Texas Intermediate edged down below $83 after advancing 2.6% on Wednesday. Nationwide inventories shrank by 4.87 million barrels last week to the lowest level since February. The data strengthened WTI’s prompt spread — the price difference between its two nearest contracts — to $1.52 in backwardation. The bullish pattern signals demand is outweighing supplies in the short term. 

Meanwhile in Canada, wildfires once again threatened 400,000 barrels a day of oil production, putting piped shipments to the US at risk. The fires helped boost Canadian heavy crude prices.

Oil has risen about 15% this year on OPEC+ production cutbacks, which have offset increased volumes from nations outside the cartel. The group will hold a market monitoring meeting next month, at which no changes to its fourth-quarter output plans are expected.

In recent days, US prices have gained at a faster pace than the global Brent benchmark. That has left WTI with its smallest discount relative to Brent since October.

Prices:

• WTI for August delivery was little changed to settle at $82.82 a barrel in New York.
• Brent for September settlement was little changed at $85.11 a barrel.

by Bloomberg | Julia Fanzeres and Alex Longley
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas