Rangebound Crude Settles Slightly Higher
by Bloomberg | Jordan Fitzgerald and Devika Krishna Kumar
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas
Oil rose but remained in a narrow range as bullish momentum in broader markets counteracts weak near-term fundamentals for the commodity, pushing traders to shift their focus to next year’s contracts.
West Texas Intermediate advanced about 1% to approach $82 a barrel, still within the band of less than $2 it has traded in this week. That marks WTI’s narrowest weekly trading range since January 2021. An unexpectedly large buildup of US crude stockpiles failed to drive prices lower on Wednesday as a hot streak for equities bolstered investors’ appetite for risk assets.
The stalemate in crude markets has helped push up activity in 2025 contracts as investors seek more avenues to profit. Prices for June and December 2025 WTI climbed to fresh two-month highs on Thursday.
The most recent government report provided bears with plenty of ammunition. US Gulf Coast crude inventories ballooned by 2.05 million barrels last week, while overall stockpiles are the highest since April. There are signs of lackluster fuel consumption, with measures of gasoline and jet fuel demand flagging.
Still, oil is on track for a monthly gain amid expectations consumption will strengthen during the US summer driving season.
“Physical markets are not really that strong right now,” said Alex Hodes, energy analyst at StoneX. “That provides me with more evidence that this kind of rally is based more on expectations of demand than what we’re seeing on the ground.”
Traders are also watching a range of US economic data over the next two days, including personal consumption and employment figures.
Prices:
- WTI for August delivery rose 1% to settle at $81.74 a barrel in New York.
- Brent for August settlement advanced 1.3% to $86.39 a barrel.
by Bloomberg | Jordan Fitzgerald and Devika Krishna Kumar
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas