Oil poised to eke out a third weekly gain as demand rises

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Oil poised to eke out a third weekly gain as demand rises

- Oil is poised to eke out a third weekly gain after bouncing around $70 a barrel this week as investors digested the demand signs.

The markets in New York had the highest on Friday after closing in the previous session with the highest since October 2018. OPEC predicted that global demand recovery is expected to gather strength in the second half of the year while traffic on European roads and most of Europe was pretty much back to pre-virus levels.

See also OPEC's Spare Oil Buffer Is Not All It Seems as Demand Roars Back

The oil topped $30 a barrel this week for the first time in more than two years but US data, showing a large increase in gasoline stocks and a slowing demand took some of the heat out of the market. The Worldwide Energy Agency still maintains its weekly figures but is likely to derail a broader global recovery, with an updated market survey later planned for Wednesday.

Progress in talks to revive a nuclear deal between Iran and world powers continues to be closely watched with a top US envoy appealing to Tehran to accept a'mutual return' to the 2015 deal.

The market is in a bullish structure now. Brent's backward timer was 55 cents in the prompt price - where later prices are more expensive than near-dated ones. What is the price for a dollar?

The oil demand will rise — or roughly 5% - in the first half of 2021 compared with the second half, according to a report from OPEC on Thursday. The estimates were little changed from a month ago.

More stories like this are available on bloomberg.com.

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