Brent oil futures for Dec delivery rose $1.37 or 1.7% to $89.42 a barrel while WTI Dec futures are trading $1.41 or 1.695% to $84.62 a barrel on Friday morning during Asian hours at the time of reporting. Both the benchmarks clocked above 2% loss yesterday. Brent premium over WTI unchanged at $4.72 a barrel during the session.
The world crude benchmark indices are altering between profits and losses this week. Crude markets opened in a bearish mood in the early week on escalation of middle east conflict and broader economic concerns that may tamper demand growth. Rise in U.S inventories and strong dollar weighed on oil complex. Build in U.S product stocks indicated demand worries. China’s retreating economic activities and API bullish numbers extended some support to oil markets this week. Investors have been walking on tight rope now. crude markets are clung to weekly losses. U.S rig numbers are due later today.
OPEC decision on further tightening of spigots and middle east conflict is in focus. Need to wait for longs and shorts movements.