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 steadies after four-day surge as US product markets run hot

© Bloombergoil china
An oil and petrochemical storage facility on the outskirts of Shanghai, China, on Tuesday, March 1, 2022.

Oil steadied after closing at the highest level in almost eight weeks as traders weighed strength in key products markets and data from China that signalled a possible easing of some anti-virus lockdowns.

West Texas Intermediate traded below $114 a barrel after rallying more than 14% over the previous four sessions. With just a couple of weeks to go before the start of the US summer driving season, gasoline has surged to a record on expanding demand coupled with restrained refining capacity.

In China, meanwhile, Shanghai reported no new Covid-19 infections in the broader community for a third consecutive day, hitting a crucial milestone that authorities have said will allow them to start unwinding a punishing lockdown.

Oil has rallied by more than 50% this year in extremely volatile trading as the war in Europe tightened supplies, while demand outside of virus-hit China picked up. WTI, the US oil benchmark, has been rising at a faster pace than Brent in recent sessions, eking out a gain last week while the global marker fell. That’s eroded its usual discount to Brent, with the pair now near parity.

In Europe, a drive by the European Union to ban imports of Russian crude over Moscow’s invasion of Ukraine has been delayed amid opposition from Hungary. Josep Borrell, the bloc’s foreign policy chief, said the foreign ministers had decided to pass the deadlock back to ambassadors for more deliberations.

“The EU’s rising tensions with Russia and the resulting uncertainties over the the bloc’s oil-and-gas supply remain front-and-center,” said Vandana Hari, founder of Vanda Insights in Singapore. “Having said that, with a $10 jump since last Tuesday, it’s hard to see much more upside in crude unless events take a sudden turn for the worse.”

Prices:
WTI for June delivery lost 0.3% to $113.91 a barrel on the New York Mercantile Exchange at 11:23 a.m. in Singapore
Earlier, prices rose as much as 0.7%.
Brent for July settlement dipped 0.1% to $114.14 a barrel on the ICE Futures Europe exchange.

US crude stockpiles at the key storage hub in Cushing, Oklahoma, have contracted by about a quarter this this year. Holdings at the delivery point for benchmark US futures likely fell by about 2.629 million barrels in the week to May 13, traders said, citing data from Wood Mackenzie Ltd.

Oil markets remain in backwardation, a bullish pattern marked by near-term prices trading above longer-dated ones. Brent’s prompt spread — the difference between its two nearest contracts — was more than $2 a barrel on Tuesday, up from less than 50 cents in late-April.

Recommended for you

More from Energy Voice

Latest Posts