News

WTI crude oil settles at $82.88 in new cycle high to cap eighth-straight week of gains

WTI crude oil up 97-cents to $82.28

What a run it’s been for the crude oil bulls in basically a straight line to $82 from $62 on August 23.

This is the eighth straight week of gains in crude and the highest close since 2014. Today is contract expiration and there’s moderate backwardation through the contract table, out to $$74 at this time next year.

Where the backwardation is more pronounced is in brent, where it’s risen to an $8 premium for the current contract compared to December futures.

Laymen see contract backwardation is bearish because prices are lower out the curve but it also says that someone out there can’t wait three months to get oil and is willing to pay $8 for someone to pull it out of storage and deliver it now. That’s a bullish sign for current demand and price action in oil lately underscores that.

On the fundamental side, the US inventory report this week was bearish but crude rallied right through it as well. I don’t see any immediate threat of OPEC+. China is a mystery with the only news today that it’s curbed independent refinery quotas for next year, but that supply is expected to go to mega refineries instead.

Invest in yourself. See our forex education hub.

Articles You May Like

EUR/USD bulls move in despite corrective US Dollar
The bid for stocks and bonds is relentless
Rent the Runway shares surge after fashion rental company reports stronger quarterly sales
GBPUSD tests upside target and finds some risk focused sellers on the test
Kharif pulses production drops about 8% year on year

Leave a Reply

Your email address will not be published. Required fields are marked *