Is the pain finally over for oil bulls? Oil prices are on track for their fourth straight session of gains, suggesting a possible end is in sight to several weeks of steady declines.
In midday trading, the price of West Texas Intermediate, the US standard, was up 1.26 per cent to $67.27 a barrel, while Brent, the international benchmark, had advanced 0.43 per cent to $72.52.
The move higher comes as the market balances the impending bite on supply from Iran sanctions with the announcement yesterday that the US had approved the sale of crude oil from its Strategic Petroleum Reserves to help inject additional supplies into the global oil market.
Crude, which is denominated in US dollars, is also getting a leg-up from the greenback’s weakness, prompted by US President Donald Trump’s critical remarks about the Federal Reserve’s interest-rate moves yesterday.
However, lending some caution were looming talks between the US and China, with both sides trying to revive trade negotiations — although neither is especially optimistic that a deal is imminent.
If oil can build on the momentum, it will help snap a lengthy weekly losing streak for both benchmarks. Brent has posted three weekly losses in a row, while WTI has seen a seven-week losing streak, its longest since 2015.
Tuesday’s moves also come ahead of inventory data from industry group American Petroleum Institute later this evening and official EIA data due on Wednesday.
Source: FT.com
