Oil settles at 2-month high on US macro data; Brent, WTI score biggest weekly gain since Israel-Hamas war
Also Read: Red Sea crisis: UK oil tanker catches fire with 22 Indians onboard after Houthi missile attack; Indian Navy responds Supply concerns are evident in the structure of Brent futures. The premium of the first-month contract to the sixth on both Brent and WTI rose to the highest since November, indicating a perception of tighter prompt supply, according to news agency Reuters.
Back home, on the Multi Commodity Exchange (MCX), crude oil futures due for a February 16 expiry, settled 0.08 per cent higher at ₹6,386 per bbl, having swung between ₹6,208 and ₹6,391 per bbl during the session, against a previous close of ₹6,381 per barrel. -Analysts said that economic stimulus from China, stronger-than-expected 4Q GDP growth in the US, cooling US inflation data, ongoing geopolitical risks, and the larger-than-expected 9.2 million-barrel drop in US commercial crude stocks for last week have all combined to wedge prices higher.
-The world's largest economy grew at a faster pace than expected in the fourth quarter, suggesting the Federal Reserve would be in no rush to cut interest rates. In the US, the Bureau of Economic Analysis' advance GDP estimate showed gross domestic product in the last quarter increased at a 3.3 per cent annualized rate, compared with the consensus forecast of two per cent.
-The Houthi military spokesperson said that naval forces carried out an operation targeting an oil tanker in the Gulf of Aden, causing a fire to break out, adding to worries of supply disruptions. A potential fuel supply disruption after a Ukrainian drone attack on an export-oriented oil refinery in southern Russia also supported prices.
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