(Bloomberg) -- Oil was poised for a fifth weekly gain as the market tightens amid a global energy crunch that’s set to increase demand for crude.
Futures in New York held above $73 a barrel, while global benchmark Brent closed at the highest level since 2018 on Thursday. Crude inventories have declined from Europe to the U.S., even as OPEC+ adds more supply, and it comes as surging natural gas prices are expected to boost demand for oil products in power generation over winter.
Oil has rallied recently following a period of demand uncertainty due to the delta variant of the virus, with some of the world’s largest traders and banks predicting that prices could climb even further on the energy crunch. The market will also be watching for the outcome of China’s first ever auction of crude from its strategic reserves later Friday.
Brent has firmed in a bullish structure as the market has tightened. The prompt timespread was 79 cents in backwardation -- where near-term contracts are more expensive than later-dated ones -- on Thursday. That compares with 69 cents a week earlier.
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