Oil is now pricing in the tightening global supply - Jan 15

[dan_s]

Trading Ecomomics:
"WTI crude futures rebounded more than 2% to around $84 per barrel on Friday, its highest since October 2014, and heading for a fourth consecutive week of gains, the longest since October as supply disruptions in Libya and Kazakhstan and dwindling US crude inventories more than offset mobility curbs in China. The latest EIA report showed US crude stockpiles declined by 4.553 million barrels last week to their lowest since October 2018 and compared to market expectations of a 1.904 million drop. Meanwhile, China, the No. 2 oil consumer, has suspended some international flights and stepped up efforts to rein in a virus outbreak in Tianjin while the highly transmissible omicron variant has spread to the northeastern city of Dalian. Also, Reuters reported, Beijing and Washington had agreed in late 2021 to release strategic stockpiles near the Lunar New Year holidays starting February 1st."

WTI closed at $84.24 on Friday, January 14; up $18/bbl since December 20th.

More in my podcast that will be up on the EPG website tomorrow afternoon.