US Crude Hits $85 as Supplies Tighten, Demand Outlook Improves

Oil prices climbed to $85 and headed for the biggest weekly gain since April as Russia signaled it would extend export curbs and China fired another salvo of state support to bolster the economy in the world’s largest crude importer.

(Bloomberg) — Oil prices climbed to $85 and headed for the biggest weekly gain since April as Russia signaled it would extend export curbs and China fired another salvo of state support to bolster the economy in the world’s largest crude importer.

West Texas Intermediate was up for a seventh day, extending the longest such run since January. US futures have climbed about 6% this week. In key US jobs data, the unemployment rate was higher than expected and wage growth slowed, adding to speculation that the Federal Reserve may be done with raising interest rates. 

Russia said that further details on production cuts made in tandem with the country’s OPEC+ partners will be announced next week. That came after Saudi Arabian flows in August fell to the lowest since March 2021. Key market gauges are already pointing to strength before any rollover, with the closely-watched spread between the nearest two December contracts for WTI at the firmest since April. 

“Everything looks rosy for the oil complex and flat prices look poised to break $90+ to the upside right now,” said Keshav Lohiya, founder of consultant Oilytics. “The question is what can derail it.”

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