Oil Rises On Geopolitical Unrest And Signs OPEC+ Will Hold Firm
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(Bloomberg) -- Oil futures rose on geopolitical unrest and signs that OPEC+ will stick with current output cuts when delegates hold a review session next week.
Western Texas Intermediate settled just shy of $82 a barrel after losing more than 3% in the final three days of last week. Continued drone strikes by Ukraine are crimping Russia’s crude-refining capabilities. Rosneft’s Kuibyshev oil refinery in Samara, Russia was forced to shut half of its capacity after an attack Saturday, Reuters reported.
Separately, delegates from the Organization of Petroleum Exporting Countries and its allies see no need to recommend changes to oil supply policy, according to several national officials. Key members will gather online on April 3 to assess implementation of the latest cutbacks, which are scheduled to be in place through the end of June.
Crude is also getting a push from technical indicators, with its 50-day moving average exceeding the 100-day moving average, a chart pattern known as a “golden cross.”
Crude is headed for a third monthly gain as OPEC+ presses on with its curbs and the US tightens sanctions on Russian flows. While China’s shaky demand outlook has been a headwind, Premier Li Qiang said Beijing was stepping up policy support to spur growth. Reflecting the bullish mood, money managers’ net-long positions on Brent have risen to the highest in more than a year.
Goldman Sachs Group Inc. said in a research note that commodities will advance this year as central banks reduce interest rates, helping to support industrial and consumer demand. That cautiously bullish outlook squares with recent comments from other market watchers, including Macquarie Group Ltd. and Carlyle Group LP.
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