Oil extends gains toward US$122 as investors weigh tight markets
BNN Bloomberg
Oil rose toward US$122 a barrel as investors weighed a tight supply outlook and the impact of China’s eventual return from virus curbs.
West Texas Intermediate gained for a second session after closing 0.2 per cent higher on Monday, shrugging off a broader market rout that was driven by expectations of higher interest rates to cool inflation. Supplies are tighter than during other recessionary periods and prices could withstand a possible economic slowdown, oil historian and S&P Global Inc. Vice Chairman Daniel Yergin told Bloomberg Television.
Brent’s nearest futures contract is trading more than US$3 above the next month, a bullish structure that points to a hard-pressed crude market. That strength has grown in recent days as Libya suffered a renewed setback to its production.
