Oil holds steady, poised for weekly gain on demand optimism and supply
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Brent and WTI on track for biggest weekly gain since early january
Oil prices remained steady on friday, with Brent Crude (brn1!) trading at $76.45 and WTI(cl1!) at $72.44 both benchmarks have gained over 2% this week, marking a second consecutive weekly gain for Brent and the first for WTI in five weeks.
Demand outlook improving in US and China
Analysts at J.P. Morgan estimate that global oil demand averaged 103.4 million barrels per day (BPD) through february 19, up 1.4 million bpd from the previous period cold weather in the US and increased industrial activity in China post-holiday are expected to drive demand further in the coming weeks.
US crude stockpiles rise, but gasoline and distillate inventories fall
The Energy Information Administration (EIA) reported a rise in us crude stockpiles, while gasoline and distillate inventories declined, driven by seasonal refinery maintenance this tightening of refined product supplies has helped support oil prices.
Geopolitical uncertainty and russian supply disruptions
Uncertainty around a potential russia-ukraine peace deal has led some traders to buy back into the market, especially after Ukraine hardened its stance on negotiations Russia’s Caspian Pipeline Consortium (CPC) crude flows were cut by 30%-40% after a ukrainian drone attack, raising concerns over tightening global supply despite this, Kazakhstan reported record-high oil production, though the means of sustaining this output remain unclear.
Trading outlook
Oil prices remain supported by supply risks and improving demand, with Brent facing resistance near $77.50-$78 and WTI at $73.50-$74 if geopolitical risks escalate, prices could test higher levels on the downside, support for brent sits at $75, while wti has key support at $71.
Oil prices remained steady on friday, with Brent Crude (brn1!) trading at $76.45 and WTI(cl1!) at $72.44 both benchmarks have gained over 2% this week, marking a second consecutive weekly gain for Brent and the first for WTI in five weeks.
Demand outlook improving in US and China
Analysts at J.P. Morgan estimate that global oil demand averaged 103.4 million barrels per day (BPD) through february 19, up 1.4 million bpd from the previous period cold weather in the US and increased industrial activity in China post-holiday are expected to drive demand further in the coming weeks.
US crude stockpiles rise, but gasoline and distillate inventories fall
The Energy Information Administration (EIA) reported a rise in us crude stockpiles, while gasoline and distillate inventories declined, driven by seasonal refinery maintenance this tightening of refined product supplies has helped support oil prices.
Geopolitical uncertainty and russian supply disruptions
Uncertainty around a potential russia-ukraine peace deal has led some traders to buy back into the market, especially after Ukraine hardened its stance on negotiations Russia’s Caspian Pipeline Consortium (CPC) crude flows were cut by 30%-40% after a ukrainian drone attack, raising concerns over tightening global supply despite this, Kazakhstan reported record-high oil production, though the means of sustaining this output remain unclear.
Trading outlook
Oil prices remain supported by supply risks and improving demand, with Brent facing resistance near $77.50-$78 and WTI at $73.50-$74 if geopolitical risks escalate, prices could test higher levels on the downside, support for brent sits at $75, while wti has key support at $71.