Thursday 21 Nov
Oil prices stabilized after a tumultuous week influenced by conflicting factors. Strong US economic data countered concerns over slowing Chinese demand and potential Middle East tensions. Brent crude closed near $81 per barrel, up nearly 2% for the week, while WTI dipped below $78.
US retail sales and jobs figures boosted market
sentiment, offsetting worries about China’s economic slowdown. However, reduced
refinery operations in the US raised concerns of oversupply. Brent crude is
poised for a second weekly gain, recovering from a seven-month low.
The market remains vigilant amid the ongoing
Israel-Gaza conflict. A strengthening backwardation structure in Brent crude
futures suggests underlying market optimism. The spread between the nearest two
contracts widened to 88 cents per barrel, up from less than 57 cents earlier
this month.
