Oil steadies as supply cuts face surprise
Oil tankers are seen parked at a yard outside a fuel depot on the outskirts of Kolkata February 3, 2015. PHOTO: REUTERS
Oil prices were near flat on Wednesday, after earlier hitting a 10-month high, as a surprise build in US crude inventories offset expectations of tight crude supply for the rest of the year.
International benchmark Brent futures dropped 7 cents to $91.99 a barrel by 1648 GMT. Its session high of $92.84 a barrel was the highest since November.
US West Texas Intermediate crude (WTI) edged 11 cents lower to $88.73. Its session high of $89.64 a barrel was also the highest since November.
Front-month Brent futures contracts traded as high as $4.90 a barrel above those for delivery six months further out, the widest spread since November, indicating tightening supply. A lack of big price moves in recent weeks has cut Brent’s historic or actual 30-day close-to-close futures volatility to its lowest since July 2021.
Published in The Express Tribune, September 14th, 2023.
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