Oil is poised for the biggest weekly gain in more than two years as OPEC+ cuts, a potential U.S.-China trade deal and U.S. interest rate policy bolstered bullish sentiment.
Futures are headed for 9.1 percent advance this week, the most since December 2016. The Saudi-led producer coalition pledged to keep markets in balance, while optimism grew that the U.S. and China would eventually reach an agreement following three-day talks. Meanwhile, Federal Reserve Chairman Jerome Powell’s comments that the central bank can be “patient and flexible” before adjusting rates reassured investors.
WTI for Feb. delivery slipped 31 cents to $52.28/bbl on Nymex as of 8:59am in Tokyo. Contract rose 23 cents to $$52.59 on Thursday
March Brent added 24 cents to $61.68/bbl on ICE Futures Europe exchange on Thursday. Brent ended session at $8.77 premium to WTI for the same month.