Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Oil holds near one-month high on signs US stockpiles falling

© Supplied by ShutterstockOil and gas platform in the Gulf of Thailand.
Oil and gas platform in the Gulf of Thailand.

Oil held near a one-month high after industry data pointed to another drop in US crude inventories and traders bet the fast-spreading omicron virus variant would prove to be less severe than earlier waves.

West Texas Intermediate was steady near $76 a barrel after gaining 11% over the last five sessions. The American Petroleum Institute reported nationwide crude holdings fell by 3.1 million barrels last week, according to people familiar with the data, which also showed a rise at Cushing, the biggest US storage hub. The government releases the official tally later on Wednesday.

Investors’ worries about omicron are easing on growing evidence that the variant is milder in nature, potentially reducing the need to impose restrictions on movement. Still, global case numbers are soaring, increasing the strain on health-care systems in the major energy-consuming economies.

Crude is heading for its biggest annual gain in more than a decade as global consumption recovered from the impact of the pandemic with the roll-out of vaccines. That’s helped to deplete once-bloated oil inventories, especially in the U.S. Should official data match the API print that would be a fifth consecutive weekly decline, the longest run of draws since September.

“It’s unusual to see this kind of volatility during the year-end holidays,” said John Driscoll, founder of JTD Energy Services Pte. “The underlying sentiment may be driven by convictions that oil prices initially overreacted to omicron and that global demand is on track to recover next year,” Driscoll said.

Prices

  • WTI for February delivery was 0.1% higher at $76.03 a barrel on the New York Mercantile Exchange at 6:01 a.m. in London.
  • Brent for February settlement gained 0.1% to $79.03 a barrel on the ICE Futures Europe exchange.

Oil’s recovery has also been supported as the Organization of Petroleum Exporting Countries and allies including Russia took a cautious approach to restoring output. The group is due to meet next week to assess policy heading into 2022. Ahead of that, Russian Deputy Prime Minister Alexander Novak said that the country was comfortable with prices between $65 and $80.

Brent’s prompt timespread — the gap between the global benchmark’s two nearest contracts — remains in backwardation, a bullish pattern marked by near-term prices commanding a premium to those further out. It was 28 cents a barrel in backwardation, compared with 1 cent a week ago.

Recommended for you

More from Energy Voice

Latest Posts