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Oil Climbs With Market Structure Firming Amid Supply Declines


Oil Climbs With Market Structure Firming on Tightening Supplies
Bloomberg
2/9/2021
Andres Guerra Luz
(Bloomberg) Oil continued its advance for the seventh straight session on expectations of a strong rebound in demand and as the dollar weakened.
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Futures in New York climbed above $58 a barrel, the highest since January 2020 after a choppy trading session Tuesday. The nearest Brent contract sharply widened its premium to the following month, pointing to supply tightness, with inventories shrinking globally and amid expectations of further supply declines in the U.S. A weaker U.S. dollar is boosting the appeal of commodities priced in the greenback. ....

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Oil Rally Stalls Below $53 After Cold Weather Surge, Saudi Cuts


Oil Climbs With U.S. Aid Hopes Brightening Consumption Outlook
Bloomberg
1/14/2021
Andres Guerra Luz and Alex Longley
(Bloomberg) Oil rose to a new 10-month high in New York on expectations that a potential $2 trillion economic relief packaged could get Americans consuming more fuel.
U.S. benchmark crude futures advanced 1.3% on Thursday. President-elect Joe Biden’s advisers recently told allies in Congress about the cost of the package, CNN reported. A weaker dollar also boosted the appeal of commodities priced in the greenback.
A stimulus package will be “putting direct money into people’s pockets,” said Josh Graves, senior market strategist at RJ O’Brien & Associates LLC. “In general, it’s going to allow them to travel more and do more things,” helping support crude demand. ....

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Oil Pares Losses With Dollar Easing Off Session Highs


Oil Rally Held Back by Dollar Gains and Equity Sell-Off
Bloomberg
1/11/2021
Andres Guerra Luz
(Bloomberg) Oil closed little changed with a stronger U.S. dollar and broader market selloff sapping momentum from a recent rally.
Futures in New York ended the session up 1 cent at the highest since February on Monday following a surge above $50 a barrel last week. Yet, crude did not manage to eke out a larger advance with U.S. equities dropping from records and dollar gains reducing the appeal of commodities like oil that are priced in the currency.
With crude starting the year strongly, Goldman Sachs Group Inc. said it expects Brent to reach $65 a barrel by the summer, sooner than previously anticipated. Last week, Saudi Arabia pledged deeper output cuts, a move that Goldman said will bring forward market tightness. The kingdom also increased its oil prices to Asia, and was followed by Iraq, Abu Dhabi and Kuwait. ....

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Oil Wavers as Dollar Rallies and Equities Decline


Oil Rally Held Back by Dollar Gains and Equity Sell-Off
Bloomberg
1/11/2021
Andres Guerra Luz
(Bloomberg) Oil closed little changed with a stronger U.S. dollar and broader market selloff sapping momentum from a recent rally.
Futures in New York ended the session up 1 cent at the highest since February on Monday following a surge above $50 a barrel last week. Yet, crude did not manage to eke out a larger advance with U.S. equities dropping from records and dollar gains reducing the appeal of commodities like oil that are priced in the currency.
With crude starting the year strongly, Goldman Sachs Group Inc. said it expects Brent to reach $65 a barrel by the summer, sooner than previously anticipated. Last week, Saudi Arabia pledged deeper output cuts, a move that Goldman said will bring forward market tightness. The kingdom also increased its oil prices to Asia, and was followed by Iraq, Abu Dhabi and Kuwait. ....

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