Commodities
Oil Holds Near November Lows as Traders Brace for Crude Glut
- US currency rallies to a one-year high, pressuring commodities
- Narrower timespreads point to less-tight physical conditions
est Texas Intermediate traded near $68 a barrel after falling by more than 3% on Monday.
Photographer: Matthew Busch/BloombergThis article is for subscribers only.
Oil held near November lows, settling near $68 a barrel, as increasingly bearish fundamentals capped the session’s gain.
In the physical market, a key supply gauge suggests a glut is coming sooner than expected, while timespreads in the futures market are flashing signs of oversupply. Also weighing on oil: OPEC cut its demand growth forecasts for a fourth consecutive month and the dollar hit a one-year high, making commodities priced in the currency less attractive.