Stock Groups

Oil Prices in 4th Weekly Gain on Signs of Tighter Supplies, Firmer Demand -Breaking

[ad_1]

© Reuters.

By Yasin Ebrahim

Investing.com – Crude settled higher on Friday, notching a fourth positive week, supported by bets the Omicron-fueled drag on demand will be short-lived at a time when global supplies are expected to tighten.

New York Mercantile Exchange gained 2.1% and settled at $84.82 a barrel, while London’s Intercontinental Exchange added 2.0% for trade at $86.14 a barrel.

A decrease in demand-related fears has supported the fourth week’s gains in oil prices.

The International Energy Agency said earlier this week that demand was proving stronger “than many of the market observers had thought, mainly due to the milder Omicron expectations.”

Positive demand has been supported by supply disruptions in key producers like Nigeria and Libya, which have led to tightening of global supplies. This also supported a rise in oil prices.

“The forward curves of Brent and WTI are in a pronounced state of backwardation, which points to tight supply,” {{Commerzbank said in a note after lifting its price target for Brent in the current quarter to $80 from $70.|Commerzbank said in a note after lifting its price target for Brent in the current quarter to $80 from $70.

The weaker dollar was also a factor in oil prices. It gained on Friday but is currently on the verge of a weekly slump. 

An oil price in dollars makes it less expensive than other currencies. This increases demand.

While the, which is a measure of the greenback in relation to six major currencies that are trade-weighted, increased by 0.40%, reaching $95.15, it continues its weekly decline.

Disclaimer: Fusion MediaWe remind you that this site does not contain accurate or real-time data. CFDs are stocks, indexes or futures. The prices of Forex and CFDs are not supplied by exchanges. They are instead provided by market makers. As such, the prices might not reflect market values and could be incorrect. Fusion Media does not accept any liability for trade losses you may incur due to the use of these data.

Fusion MediaFusion Media or any other person involved in the website will not be held responsible for any loss or damage resulting from reliance on this information, including charts, buy/sell signals, and data. Trading the financial markets is the most risky investment form. Please make sure you are fully aware of all the costs and risks involved.

[ad_2]