Oil Near $90 as Scarce Supplies Vie With Buying Exhaustion
- West Texas Intermediate settled below $89 after drop last week
- Banks are increasingly making predictions Brent will hit $100
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Oil’s rally continued to cool with investors in search of a new catalyst to support more buying.
While some physical crude cargoes are commanding hefty premiums and prompt time-spreads are at the widest in a year — signaling supply scarcity — macro headwinds are capping gains. The dollar has surged to an eight-month high, diminishing the appeal of commodities priced in the currency, and rate-hike expectations are fueling risk-off sentiment across markets.