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Oil Creeps Up After Loss as Prices Take Cues From Wider Markets - BLOOMBERG

JUNE 24, 2024

Yongchang Chin and Alex Longley

(Bloomberg) -- Oil edged higher as it drew support from a firmer tone across wider markets.

Brent traded above $85 a barrel, clawing back some of Friday’s decline. Global stocks rose ahead of a week of political risks and inflation data, while the dollar fell making commodities priced in the currency more appealing.

Crude remains on track for a monthly gain, and there are signs of rising gasoline demand in the US and healthy air travel volumes, which is aiding the outlook. The prompt spread for Brent has strengthened this month in a bullish backwardation structure, signaling tightening supply.

“We remain supportive toward the oil market with a deficit over the third quarter set to tighten the oil balance,” said Warren Patterson, Singapore-based head of commodities strategy at ING Groep NV. “Speculators have also become more constructive toward oil as we move into summer.”

In Iran, snap elections will be held on Friday following the death of Ebrahim Raisi in a helicopter crash last month. The vote comes at a time of heightened tensions between Iran and the West, with Tehran mobilizing a regional network of proxy militias to target Israel.


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