Oil Steady in Early Asian Trading
Oil steadied after a volatile session, as traders assessed signs of a tightening market that has supported gains in the new year.
West Texas Intermediate held above $73 a barrel, after ending more than 1% lower on Wednesday even as U.S. data showed crude holdings at the key Cushing, Oklahoma, hub hit their lowest since 2014. Brent settled near $76.
Oil has made a strong start to 2025, despite widespread concerns that prices will struggle this year. The advance that has lifted WTI to its highest since mid-October has been driven by falling U.S. stockpiles, lower supply from OPEC+ member Russia and concerns that President-elect Donald Trump could tighten sanctions on Iran when he takes office.
Market metrics point to tightening conditions. WTI’s prompt spread, the difference between its two nearest contracts, is 64 cents a barrel in backwardation, a bullish pattern. That’s more than double the gap from a month ago.
Source: Bloomberg