Oil prices on the march again in tight market; U.S. crude at 7-yr high
Oil prices rose on Monday, extending pre-weekend gains, with U.S. crude hitting a seven-year high as global supply remained tight amid strong demand worldwide as economies recover from coronavirus pandemic-induced slumps.
Brent crude futures settled 0.54% higher at $85.99 per barrel, following on from last Friday’s 1.1% gain. The contract was near a three-year high of $86.10, hit last Thursday.
U.S. West Texas Intermediate (WTI) crude futures settled flat at $83.76 per barrel, after climbing 1.5% on Friday. It touched its highest since October 2014 — $84.28 — earlier in the session.
“Bullish sentiment continues to support oil prices as global supply remains tight at a time when demand is recovering from the pandemic,” said Toshitaka Tazawa, an analyst at Fujitomi Securities.
“But immediate gains for the WTI’s nearest-term contract may be limited given steepening backwardation,” Tazawa said.
Reflecting strong market sentiment, money managers raised their net long U.S. crude futures and options positions in the week to October 19, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.
Reference: CNBC
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