Oil's rally gathers pace as Brent pops above $95 a barrel
Oil surged to a 10-month high — extending a powerful rally that may rekindle inflation — as supply cuts from OPEC+ tightened the market and Saudi Arabia's energy minister shied away from any change in course.
Global benchmark Brent topped $95 a barrel for the first time since November. The tighter market has ignited a flurry of predictions that $100 oil could return in a roster than runs from industry heavyweights such as Chevron Corp.
Chief Executive Officer Mike Wirth to traditional bears at Citigroup Inc.
The latest upswing has been marked by major moves in timespreads, one of the market's most-keenly tracked gauges. Brent and WTI are now trading in backwardation, a bullish pattern indicating tight supplies, of more than $1 at the front of the curve.
That comes as premiums for real-world barrels rocket higher, particularly in the US, traders and brokers said.
Crude has soared by almost a third since mid-June, with Riyadh and Moscow joining hands to curtail exports in a bid to drain inventories and drive a rebound in prices. An improving outlook in the world's two biggest economies — the US and China — has also supported the advance.
Oil's relentless surge has been one of the standout features of commodity markets over the third quarter.
«The continuous rise in oil prices is not surprising,» analysts at brokerage PVM said in a report. «The extended production/export cuts from Saudi Arabia and Russia provide an auspicious backdrop.»
