Oil Rises With Tighter Supply Outook Overshadowing Vaccine Woes
- Crude market’s structure is at the strongest in months
- Issues with Covid-19 vaccine rollout muddy the demand outlook
A valve control wheel connected to crude oil pipework in an oilfield near Dyurtyuli, in the Republic of Bashkortostan, Russia, on Thursday, Nov. 19, 2020.
Photographer: Andrey Rudakov/BloombergOil gained the most in about a week with expectations for tighter global supply offsetting concerns that a bumpy Covid-19 vaccine rollout will further blunt demand.
Futures closed nearly 1% higher after fluctuating between gains and losses in Monday’s session. Key timespreads for both U.S. and global benchmark crude futures are in a structure indicating shrinking supplies. Iraq pledged to cut output in January and February to compensate for pumping more than its OPEC+ quota last year, and Libyan guards halted some crude exports after a pay dispute. At the same time, Russian seaborne exports of its flagship Urals grade will fall by about 20% in February.