- Crude oil is set for the second week of gains amid tighter supplies and despite renewed curbs on movement related to a virus resurgence
- US crude oil inventories plunged, the ninth in 10 weeks
- The Federal Reserve signaled that it would continue to support the economy
- The US dollar index has recently declined to the lowest level in over a month, helping buoy oil prices
- Oil traders and investors are likely focusing more on the broad global economic recovery rather than the more acute delta variant problem (Bloomberg)
- The oil market structure has strengthened over the past few weeks in the face of new mandates and lockdowns around the globe
- The widening of the backwardation is a bullish signal where near-term prices are more expensive than those further out
- Brent’s month one versus month two timespread is near $1.0/Bbl, the widest since June and February before that