Global benchmark Brent rose above $89 a barrel and is up more than 2% for the week, while West Texas Intermediate was near $84.
Oil headed for a weekly gain ahead of US inflation data that may give further clues on the path forward for monetary policy, shaping appetite for risk assets including commodities such as crude.
Global benchmark Brent rose above $89 a barrel and is up more than 2% for the week, while West Texas Intermediate was near $84. The Federal Reserve’s preferred inflation figure is due later Friday, coming hard on the heels of data showing weaker US economic growth. Other gauges of price rises in the US remained hotter-than-expected, suggesting the timing of rate cuts may be pushed back.
Crude has advanced this year on supply cutbacks from OPEC+ and geopolitical tensions in the Middle East, including heightened tension between Israel and Iran that lifted Brent above $90 a barrel earlier this month. This week’s advance was also supported by data showing a drawdown in US crude inventories.
Timespreads point to a tighter market, with the gap between Brent’s two nearest contracts — a widely watched metric — at $1.24 a barrel in backwardation, a bullish pattern. That’s twice the difference a month ago.
Still in Asia, profits from producing diesel are near the lowest in almost a year, while stockpiles of middle distillates — a category that includes diesel — in Singapore have expanded to the most since July 2021.
Also in focus Friday will be earnings and market commentary from some of the world’s biggest oil majors, including Chevron Corp. and Exxon Mobil Corp.