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Oil Recovers From Weekly Loss Ahead of Big Week of Data

(Bloomberg) — Oil edged higher after last week’s drop as traders look ahead to several industry reports and a Federal Reserve decision on interest rates.

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Brent traded back above $80 a barrel after losing 2.5% last week. Prices extended a recovery having declined after OPEC and its allies announced plans to restore some output to the market later this year. It was followed by the biggest pullback in net-bullish bets for the global benchmark on record.

Traders will be watching for monthly reports from OPEC and the International Energy Agency, due Tuesday and Wednesday, that will shed light on the outlook for the rest of the year after the producer group’s most recent moves. The Fed also releases its decision on interest rates mid-week.

Crude has dropped since early April on a weakening physical market and fading geopolitical risk premium. After OPEC+’s announcement of a rollback in output cuts caused prices to slump, officials emphasized that the supply increase had always been provisional and could be paused.

“We expect that healthy consumers and solid summer demand for transportation and cooling will push the market in a sizable Q3 deficit,” Goldman Sachs Group Inc. analysts including Daan Struyven wrote in a note. “We stick to our $75-$90 range for Brent oil prices.”

Elsewhere, Iraq said it expects to soon reach a final agreement with the semi-autonomous region of Kurdistan and international oil companies there to restart oil exports that have been disrupted for more than a year.

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