Oil 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 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 near $84 a barrel, which would be the longest such run since January. US futures have climbed about 5% this week.
Russia said that further details on production cuts made in tandem with the country’s OPEC+ partners will be announced next week. Key market gauges are already pointing to market strength before any rollover, with the closely-watched spread between the nearest two December contracts for WTI at the firmest since April.
Additional support for crude prices has come from speculation that the Federal Reserve may not need to deliver further interest rate hikes as inflation cools off, while China is ramping up efforts to stimulate its own economy. Later Friday, US jobs data will provide the next clues on the path of the world’s largest economy.
“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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