Oil Poised for Biggest Weekly Rally Since March On OPEC+ Move
NDTV
The tightening outlook halted the slide in oil prices, which have been weighed down by concerns over a global economic slowdown and aggressive rate hikes by central banks.
Oil headed for the biggest weekly gain since early March as OPEC+ put the market on course for further tightening ahead of winter.
While West Texas Intermediate dipped toward $88 a barrel on Friday, futures are up around 11% for the week. Time spreads were signalling supply scarcity even before the producer alliance announced its biggest output cut since the start of the pandemic, a move that's set to squeeze the market even more.
The tightening outlook halted the slide in oil prices, which have been weighed down by concerns over a global economic slowdown and aggressive rate hikes by central banks. Russia also reiterated this week that it won't sell oil to countries that adopt a US-led price cap, adding to supply uncertainty.
The move by OPEC+ to cut output "could be a turning point for the market," Australia and New Zealand Banking Group Ltd. analysts including Daniel Hynes said in a note. "Sentiment was already bearish in anticipation of a weakening global economy, and this decision should further tighten the market."
